Online ad spending to surpass print, hitting $39.5B

U.S. online advertising spending, which grew 23.0% to $32.0 billion in 2011, is expected to grow an additional 23.3%, to $39.5 billion, this year, pushing it ahead of print newspaper and magazine ad spending for the first time, according to a new study by eMarketer Inc.
Print ad spending is expected to fall to $33.8 billion this year, from $36.0 billion in 2011.
Total ad spending is also expected to grow, according to the company. Despite concern about the troubled economy, total ad expenditures in the U.S. are expected to grow by 6.7% this year, to $169.5 billion, boosted by the national elections and summer Olympics in London. In 2011, overall ad expenditures grew 3.4%, to $158.9 billion, eMarketer said.

http://www.btobonline.com/article/20120119/ADVERTISING14/301199994/online-ad-spending-to-surpass-print-hitting-39-5b?utm_source=dailynewsletter&utm_medium=email&utm_content=editorial&utm_campaign=dailyclickthroughs

Barclays: Lower Ad Growth For '12

In a new report, Barclays Capital is calling 2012 a “low growth environment” for the ad agency business. The financial firm is forecasting that agency organic revenue growth next will average 2.9%, down sharply from the 5.6% that the firm believes agencies will achieve in 2011.

 

Barclays also cited what it termed the “Wal-Mart Effect” on advertising, which it described as the shift of ad dollars from local to national media, as big marketers continue to seek greater efficiencies from their marketing budgets.

“National advertising has been gaining share of the total spending pie steadily since 1980, driven by the consolidation of media and advertising companies, not to mention the consolidation of corporate America,” the Barclays report stated. “We expect national advertising will represent approximately 38% of total U.S. advertising expenditures this year, up from 25% in 1980. Local advertising has lost 19 percentage points of share during this time.”

The firm reiterated its total U.S. ad spend growth projections for 2011 and 2012 of 1.4% and 4.0% respectively, which in both cases, is below the firm’s estimates for U.S. nominal GDP growth of 4% and 5%.
Those forecasts are directionally in line with other recent ad spend predictions. Publicis Groupe’s ZenithOptimedia, for example, estimates that 2011 U.S. spending will be up 2.2%, while 2012 growth will reach 3.5%.

Read more: http://www.mediapost.com/publications/article/164379/barclays-lower-ad-growth-for-12.html#ixzz1jdfGo7YS

Forrester: Interactive marketing spending will reach $76.6 billion by 2016

http://www.btobonline.com/article/20110825/ADVERTISING13/308259995/forrester-interactive-marketing-spending-will-reach-76-6-billion-by?utm_source=dailynewsletter&utm_medium=email&utm_content=editorial&utm_campaign=dailyclickthroughs

U.S. interactive marketing spending will grow from $34.5 billion this year to $76.6 billion in 2016, a compound annual growth rate of 17%, according to a new report by Forrester Research.

Forrester's “U.S. Interactive Marketing Forecast, 2011-2016” projects that interactive marketing will make up 35% of all marketing spending by 2016, up from 19% this year.

Spending on search marketing will grow from $18.8 billion this year to $33.3 billion in 2016; display ads will grow from $10.9 billion this year to $27.6 billion; and social media will increase from $1.6 billion this year to $5.0 billion.

Barclays: Expect A Pullback In Branded Ad Spending

http://paidcontent.org/article/419-barclays-slight-pullback-in-branded-ad-spend-expected/

There are two general rules when it comes to advertising spending these days: when times are tough, marketers tend to take money from brand awareness efforts to campaigns with a clearer return, like lead gen or direct response. The second rule is that nothing can stop the shift from traditional to digital. So it’s no surprise that Barclays has revised its U.S. ad spending projections downward for this year and next, while noting that while display’s momentum may still be strong, it’s not as robust as previously thought.

Specifically, Barclays lowered its total ad spend forecast to 1.4 percent from 2.9 percent in this year. Also, Barclays now anticipates a 4 percent rise in ad dollars instead of a 5.2 percent in 2012. And if it weren’t for the piles of cash likely to flow through next year’s presidential and congressional campaigns, ad spending in 2012 would only be 2.5 percent, says Barclays analyst Anthony DiClemente.

For online, spending will reach $29.9 billion, up 14.8 percent in 2011 and then gain 13.6 percent to end 2012 at $33.9 billion. Barclays previously anticipated a 16.5 percent increase for 2011 and 15.2 percent for 2012. Display should grow 14.9 percent to $13.2 billion, while search gains 14.5 percent to 15.9 billion in 2012. Barclays search forecast has remained unchanged, as the segment is considered to be the last ad category to be affected by a slowdown in spending and is often the first to comeback when ad budgets rise.
The main areas propelling online ad growth are video and mobile. Video remains the fastest growing part of online advertising in general and display in particular with 33 percent compound growth between 2010 and 1015, Barclays estimates.

Search currently represents a 46 percent share of total online spending, compared to banner ads, which the second largest slice, at 24 percent. Despite video’s growth, it pays to keep in mind how small it is, as it represents just 7 percent of all online ad spending.

Avoiding the vague worries about the threat of a double dip recession, Barclays’ reasons for revising its forecast down are attributed to weak estimates for back-to-school sales, pessimism around retail and coming holiday sales, and the increased likelihood that the auto industry’s recovery will sputter next year. After all, auto’s are a bellwether ad category, and it was continued spending by car makers and dealers that helped keep ad spending positive this past year. If auto goes down substantially, the rest of the leading categories could follow as well.

To put Barclays’ views in context, here are some of the recent ad spend forecasts:
—eMarketer expects online to rise 20.2 percent this year and 17 percent in 2012.
—Zenith revised its global ad spending outlook downward ever so slightly to a decent 4.1 percent rise from April’s prediction of a 4.2 percent gain. In addition, global internet advertising was also dialed back just a bit to a still robust 14.2 percent from 14.4 percent three months ago.
—WPP’s GroupM expects global ad growth of 6.8 percent in 2012 called for slowing growth, while online was still expected to grow even faster than previously thought, rising between 15- to 16 percent a year through 2012.
—IPG’s Magna Global said in April that online ads would rise 18.7 percent. It maintains that online advertising is expected to account for 17.3 percent ($30.1 billion) of total ad revenues and it expects this share will grow to 22.4 percent ($47.4 billion) in the next five years. The average growth per year will be 9.5 percent, which is quite strong in an economy expected to grow in the low single digits, on average.

Study: Marketing automation spend to hit $325 million

http://www.btobonline.com/article/20110721/DIRECT10/307219999/study-marketing-automation-spend-to-hit-325-million?utm_source=dailynewsletter&utm_medium=email&utm_content=editorial&utm_campaign=dailyclickthroughs

B2b marketers will spend $325 million on marketing automation solutions this year, a 50% increase in marketing automation spending over last year, according to a study by marketing consultancy Raab Associates.
According to Raab's “B2B Marketing Automation Vendor Selection Toolkit,” which also offers product comparisons and recommendations, midsize businesses (those with sales of $20 million to $500 million) command the bulk of the dollars spent, projected to hit $145 million, or 45% of the total.
However, “microbusinesses” (defined by Raab as companies with less than $5 million in revenue) lead in the number of marketing automation installations, forecast to total 12,000, or 61% of all system installations. Raab's marketing automation spending estimates are based on information provided by vendors in May and June, according to the company.

Group M's Canadian Outlook

http://www.marketingmag.ca/news/media-news/groupm-downgrades-global-ad-spend-forecasts-31381?p=31381?utm_source=EmailMarketing&utm_medium=email&utm_campaign=marketing_daily_AM

• TV is strong, but newspapers reign. After spending $3.76B on TV advertising in 2010, advertisers will pay $4.01B this year and $4.09B next. Newspapers took in $4B in ad revenue in 2010, and are likely to bring in $4.18B this year and $4.2B next.

• TV spending was up a whopping 21% in 2010 after falling 8.5% in the dark recession-clouded days of 2009. It’s predicted to rise a more modest 6.8% this year and just 2% in 2012.

• Magazine was the only media that didn’t enjoy a bounce-back in 2010. After falling 14.7% in 2009, consumer magazines were off another 2% in 2010 and are projected to be flat this year. For business books, the drop was 13.8% in 2009, 3% last year and will likely fall another 3% this year.

• In 2004, Canadian marketers spent just $364 million on digital advertising; that rose to just over $2 billion last year and should hit $2.365 billion in 2011 (about 17.4% of all media spend).

• Procter & Gamble remains Canada’s biggest advertiser, spending $211 million in 2010, up 27% from the year before. GM was in second place spending $151 million, up 68%, followed by the Federal Government ($126 million, +4%) and Rogers Communications ($124 million, +8%).

Top 200 brands advertising budgets

http://www.marketingdegree.net/advertising-spends"> src="http://images.marketingdegree.net.s3.amazonaws.com/ad-age.jpg" alt="Top 200 Brands Advertising Spends" width="500"  border="0" />
Designed by http://www.blogger.com/%3CA%20href= Degree, to see the research please http://www.blogger.com/%3CA%20href= here

http://adage.com/article/adagestat/top-200-u-s-brands-ranked-2010-ad-spend-infographic/228340/

Traditional Media Spending Faces Stagnation

The flight of ad dollars away from traditional media is set to continue, according to a new forecast from eMarketer.

After a recovery from the recession—during which U.S. spending on traditional media (directories, magazines, newspapers, outdoor, radio, and TV) fell by 18.5 percent—eMarketer estimates that spending increased by 2.1 percent in 2010 and projects growth of just under 1 percent this year. From 2012 to 2015, total traditional media spending is predicted to hover around an annual total of $129 billion, barely up from a projected $126 billion this year.

The one exception is spending on TV advertising (which includes network, syndication, and spot broadcast TV as well as cable TV). eMarketer estimates that this grew by nearly 10 percent in 2010, as the economy recovered to reach a total of $59 billion. By 2015, U.S. spending on TV advertising is forecast to total $68 billion.

The firm's last forecast for U.S. online ad spending put the total at $26 billion in 2010 and projected that it would reach $40.5 billion by 2014.

http://www.adweek.com/news/advertising-branding/traditional-media-spending-faces-stagnation-131974

DMA: Move to digital marketing gathering steam

http://www.btobonline.com/article/20110218/DIRECT10/302189994/dma-move-to-digital-marketing-gathering-steam

U.S. and Canadian marketers are strongly shifting budgets to digital campaigns, as well as to such newer platforms as video, mobile coupons and in-game ads, according to a new report from the Direct Marketing Association.
The DMA's "Digital Marketing in the U.S. and Canada" reported that 72% of U.S. marketers and agencies will increase their online budgets this year, with an average rise in digital marketing expenditures of 71%. Big budgetary shifts also are coming in email marketing (up 53%) and mobile marketing (45%). Traditional channels such as direct mail, TV, radio and print ads all will suffer budget declines this year, according to the study.
Canadian marketers and agencies are somewhat more aggressive in their shift to digital channels, with 79% planning to increase online budgets this year, with an average expenditure increase of 76%.

http://www.the-dma.org/cgi/dispannouncements?article=1528

Online Ad Spend Continues Double-Digit Growth

http://www.emarketer.com/Article.aspx?R=1008087
eMarketer, which forms its forecast by performing a meta-analysis of research estimates and methodologies from dozens of firms that track ad spending, projects a 10.5% increase in US online ad spending next year, followed by double-digit growth every year through 2014 when spending will reach $40.5 billion.

In the In-Box, More Retail Promotions

Large retailers sent 15 percent more promotional e-mails per subscriber in 2010 than in 2009, according to Responsys, an online marketing firm. Responsys arrived at the figure by setting up dummy accounts to track the e-mail marketing practices of some 100 of the largest online retailers.
Retailers have been stepping up their reliance on promotional e-mail for years; the volume of e-mail sent per subscriber has increased by double-digit percentages every year since 2006, when Chad White, the research director at Responsys, began collecting data.
Mr. White said that some of this increase was offset by a decline in the amount of catalogs and direct mail sent by marketers. But he added that this e-mail blizzard, while profitable in the short term, could be overkill. “Subscribers might either opt out or they’ll tune out, or, worst of all, they might file a spam complaint,” he said.
http://www.nytimes.com/2011/01/10/business/media/10drill.html?_r=1&nl=business&emc=ata3&pagewanted=print

Social media ad revenue limited, TV to stay ‘super media’: Deloitte

http://www.marketingmag.ca/news/media-news/social-media-ad-revenue-limited-tv-to-stay-%e2%80%98super-media%e2%80%99-deloitte-21395

Although social networks like Facebook are expected to surpass one billion unique members and serve up more than two trillion ads this year, their ad revenues will remain “relatively modest” compared with other forms of media, says a new report from Deloitte Canada.

In its 10th annual TMT Predictions report (technology, media and telecommunications), Deloitte noted that while global social media advertising revenues will hit US$5 billion this year, they would account for less than 1% of all worldwide ad spending.

Deloitte noted that social networks would still achieve “impressive” gross margins, but their low revenues of about $4 a year per member will prevent them from achieving revenues similar to traditional media and other forms of online advertising.

Elsewhere, Deloitte predicted that TV would strengthen its “super media” status in 2011, with the global audience growing by 40 million to 3.7 billion and boosting worldwide viewing by an astounding 140 billion hours from 2010. That will translate into an additional $10 billion in global ad revenues.
TV shows will be the most common topic of conversation around the world and the subject of more than one billion tweets, Deloitte predicted.

“In short, television will likely continue to command a growing share of the world’s attention and wallets and will retain its leadership among all media in terms of total revenues” including ad sales, subscriptions, pay-per-view and license fees, said the Deloitte report.

MagnaGlobal Sees TV Up 6.8% in 2011

http://www.broadcastingcable.com/article/462600-MagnaGlobal_Sees_TV_Up_6_8_in_2011.php
Media buyer MagnaGlobal says that while economic challenges persist, it expects national TV advertising to increase by 6.8% in 2011.

The new forecast is an increase from an earlier forecast of a 5.8% gain.

Overall MagnaGlobal says ad spending rose 3.1% in 2010, up from an earlier estimate of 2.8%, and will be up a similar amount in 2011, excluding the impact of the Olympics and the elections. Including the impact of politics and the Olympics, total advertising will grow by only 1.9%, compared to 4.3% in 2010.

Some traditional media are weakening, including newspapers, magazines, directories, and direct mail. Gaining ground are digital, broadcast and outdoor media.

"Interest in mobile advertising has been catalyzed among large advertisers over the past year, and we expect growth of 60.1% during 2011.  Online video has achieved meaningful scale, and is now commonly used by a wide range of advertisers; growth should approximate 26.8% this year.  Emerging outdoor media will also outpace the rest of the outdoor industry as inventory is increasingly monetized; we expect the sub-sector to grow by 17.4%," the MagnaGlobal report says.

"Alongside these trends, traditional TV and older forms of digital media will continue to grow rapidly.  We expect TV advertising to rise by 6.3% on a normalized basis during 2011 and digital display to grow by 11.6%.  Paid search will also fare well, rising by 11.1% during the same period," the agency says.

Direct, digital ad spending to rise

http://www.btobonline.com/article/20110114/FREE/301149996/report-direct-digital-ad-spending-to-rise

Direct and digital advertising expenditures in the U.S. will increase by 6.2% this year compared to last year, to $163.9 billion, according to a new report from marketing consultancy Winterberry Group. Of that total, direct mail spending will grow 5.8%, to $47.8 billion this year.

According to Winterberry's report, "Outlook 2011: What to Expect in Direct & Digital Marketing," this represents an acceleration of expenditures over 2010. Winterberry reported that the $154.4 billion spent on direct and digital advertising last year represented just a 2.7% increase over 2009. Digital advertising accounted for $27.7 billion of that amount, with spending on digital display advertising rising 10.7% year-over-year.
 
Direct response print advertising spending, which suffered a 3.6% decline, was the only direct marketing segment to see a decrease last year.
 
Winterberry projects this year that digital and direct spending will grow in all categories: Digital will be up 14%, followed by insert media (9.1%), direct-response broadcast (7.6%), direct mail (5.8%) and direct-response print (2%).

Ad pages stabilize

Business-oriented print advertising pages stabilized in 2010 compared with the ad page freefall of 2009, according to reports released this week by American Business Media and MPA.
B2b advertising pages increased slightly in October compared with the year-earlier period, according to Business Information Network data released by American Business Media. Ad pages increased 0.6% to 57,045 in October. For the January-October 2010 period, ad pages declined 3.5% compared with the year-earlier period.

In October, five of 21 advertising categories posted double-digit gains: transportation and logistics (32.3%); miscellaneous (24.2%); automotive (18.8%); banking, finance and insurance (14.5%); and manufacturing and processing (12.1%). For the January-October period, only four categories posted any gains: automotive (7.1%), miscellaneous (4.1%), healthcare (1.3%) and agriculture (1.0%).

Consumer magazine advertising pages declined 0.1% last year compared with 2009, according to Publishers Information Bureau data released by MPA. However, for the fourth quarter ad pages surged 3.5% compared with the year-earlier period.

http://www.btobonline.com/article/20110111/MEDIABUSINESS/301119999/ad-pages-stabilize

US Online Ad Spending to grow 13.9% in 2010

After 2009’s downslide, US online ad spending in 2010 will rise by 13.9%, reaching a record $25.8 billion. But records are made to be broken. In each of the following four years, internet ad spending will hit new peaks, passing $30 billion in 2012 and breaking the $40 billion barrier in 2014.
Another milestone: For the first time, online ad spending will surpass newspaper advertising, which eMarketer estimates at $25.7 billion for 2010. That makes internet advertising second only to TV among measured media.
http://www.emarketer.com/Report.aspx?code=emarketer_2000725

Online Ads Pull Ahead of Newspapers

http://online.wsj.com/article/SB10001424052748704443704576026073503437388.html?mod=dist_smartbrief
This year, for the first time, advertisers will have spent more on Internet ads than on print newspaper ads, according to new estimates from eMarketer.

The digital-marketing research firm says U.S. spending on online ads will hit $25.8 billion, surpassing the $22.8 billion spent on print ads in newspapers.

Morgan Stanley's Meeker Sees Online Ad Boom

http://www.businessweek.com/technology/content/nov2010/tc20101116_062591.htm
Mary Meeker will predict a $50 billion online advertising boom in an address at the annual Web 2.0 Summit in San Francisco today. The Morgan Stanley analyst will say as well that mobile commerce may gain market share faster than traditional online retailing.

Mobile Ad Spending Trends Upward

http://www.adweek.com/aw/content_display/news/agency/e3if5f773e59310e059c43c985188622dc1

With Apple and Google in stiff competition for mobile advertising dollars, it's useful to review how much money is at stake.

eMarketer predicts that mobile advertising across all principal formats -- display, search and messaging-based -- will reach $1.56 billion by 2013.

Commensurate with its status as an emerging channel, mobile advertising will achieve a lofty compound annual growth rate (CAGR) of 37.3 percent between 2008 and 2013 -- considerably higher than online ad spending as a whole, but more in line with emerging online formats such as digital video.

Digital Out-of-Home Ad Spend Rises

http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3if40aadb1b179f42a8dab44bbdd36ca0c
The Digital Place-based Advertising Association reported that spending on digital place-based video networks grew 25 percent in the first half of 2009.

The DPAA's figure, estimated by Miller Kaplan Arase, did not include cinema advertising, which makes up more than half of the dollars spent in the digital place-based out-of-home market. That makes the overall impact of the medium difficult to gauge.

PQ Media, publisher of the Global Digital Out-of-Home Media Forecast, estimated that the total digital OOH network ad spend—including all 211 networks in five major venue categories (cinema, retail, office, entertainment and transit)—grew 10 percent to 15 percent in the first half of the year. Cinema grew about 8 percent to 10 percent.

"The growth rates and activity in this sector are very encouraging," said Kris Magel, evp, director of national broadcast at Initiative. "It's an indication that place-based media is moving beyond the startup phase and becoming a viable medium that is here to stay—and one that is very complementary to more traditional video media options."

Including cinema, the DPAA estimated total advertising for digital pace-based media was more than $1 billion.