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16/07/2014 by

Global Ad Spending Growth Will Double In 2014

Global ad spending growth will double in 2014. Advertisers worldwide will spend $545.40 billion on paid media this year, show new figures from eMarketer.

Global Ad Spending Growth Will Double In 2014. By pro speaker Igor Beuker for

Total media ad spending will increase 5.7%, eMarketer projects, more than doubling its growth rate of 2.6% from a year ago.

Digital advertising will account for over 25% of global media advertising this year.

This story offers CMOs the insights into defining their POE media mix.

Why Global Ad Spending Doubles in 2014?

There are a few tangible reasons why 2014 will be such a good advertising year. It includes major events like the Winter Games and more important: the World Cup. But there’s more to explore.

Why Global Ad spending Doubles in 2014?

But the real growth comes from digital and programmatic advertising, and from mobile ads on our smartphones and tablets.

On a long-term basis, digital channels will continue to drive advertising growth across the globe.

eMarketer estimates that digital ad spending will increase 16.7% this year, totaling $140.15 billion and surpassing 25% of all media ad spending for the first time.

Within the digital category, advertising on tablets and smartphones continues to be a key catalyst for growth.

Mobile ad spending worldwide will increase 84.7% in 2014 to reach $32.71 billion this year.

In the most mature digital advertising markets, such as the US and the UK, for example, we expect mobile ad spending to take a majority share of digital ad spending in the near future.

In the UK, mobile will account for 70.4% of digital ad spending by 2018; the US will be close behind at 67.8%.

Conversely, in emerging markets like China, Indonesia and India, mobile advertising dollars will remain a comparatively small portion of digital ad spending throughout our forecast period.

Which Markets Spend Most on Ads Per Consumer?

The US is by far the leader in total media ad spending. eMarketer estimates that the US will eclipse $180 billion in advertising spending this year, or nearly one-third of the worldwide total.

Global Ad Spending Growth Will Double In 2014

This spending is also the highest in the world per capita; US advertisers will spend nearly $565 on paid media, on average, to reach each consumer in the country in 2014.

By comparison, advertisers in China will spend only $37.01 per person, though the country’s large population adds up to the second-biggest ad spending total in the world.

Norway is the second-leading country in terms of ad spending per person, at $538.71.

Australia comes next in line at around $504 per person and is the only other country where advertisers will spend more than $400 this year to reach the average consumer.

My Opinion

Global CMOs will need to make sure that they are getting the highest possible ROI on their media investments.

That can be done by big-data, adaptive and liquid media planning and creating smarter POE media strategies.

The CMOs that do not have the deepest pockets? They will need to focus on smart content marketing to earn attention. Next they will need to launch organic growing owned media channels.

Global ad networks like WPP and Omnicom will be very happy with this eMarketer forecasts.

Nevertheless, these networks will be cautious with their own predictions towards their shareholders.

Under promise and over delivering has been the smart tactics of e.g., Sir Martin Sorrell.

Social sites such as Facebook, Google and Twitter are battling to generate more revenue from web and mobile ads as consumers increasingly use their smartphones and tablets for shopping, playing video games and communicating on social networks.

All 3 social companies are listed and that means they will push hard to monetize their inventory. That might lead to more advertising ‘spam’ on social networks. And eventually that experience will offer new entrants new possibilities.

My apologies for not including all charts from eMarketer in this story. They tend to publish them so small that they are almost impossible to read.

What About You?
What do you expect from global advertising this year? Who will win and who will suffer? We all get smarter from peer discussions, so share your ideas.

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About the Author
Igor Beuker is an acclaimed trendwatcher & pro speaker, serial entrepreneur, marketing consultant and board member at several disruptive media, technology and entertainment firms. Book Igor as keynote speaker, follow Igor on Twitter or contact him via LinkedIn.

Source and full figures: eMarketer.


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