Interactive media’s share of worldwide advertising expenditures – internet, mobile and gaming – will hit 15% next year, according to a new GroupM study.
This is almost double the amount recorded four years ago, with interactive media expected to remain the principle source of advertising growth as ad spending in traditional media continues to decline.
The survey revealed that ad spending in interactive media reached 11% last year, sparked mostly by gains recorded in the US and Western Europe, as well as by the increased use and availability of improved handsets, inexpensive laptops, faster broadband, and extensive WiFi connections.
The survey, which covered 35 countries, shows digital advertising’s share of total ad investment rising from 8% in 2005 to 15% in 2009.
It points out that internet advertising has been the principal source of media investment growth in western nations since 2001 as spending in traditional media has levelled off.
Rob Norman, global CEO of GroupM Interaction, said: “This report aims to improve advertisers’ success rate in digital marketing.
“There’s little doubt that interactive channels are increasingly vital to delivering reach and engagement and will only become more so in the coming years. This report sheds considerable light on how best to use these platforms and how marketers can get the most out of their investment in them.”
The report also revealed that almost 45% of 2007 interactive ad spending counted as display, a figure that is expected to fall slightly. Paid search advertising clocked in at 38% and is expected to grow.
Respondents also revealed that the amount of time consumers spent online was increasing, from a mean average of 27 minutes daily in 2005 to a projected 46 minutes next year. The report concluded that the increased time was generally not a result of consumers spending less time with TV, radio and print but rather carving out more time to spend online each year, or possibly multitasking, which raises the bar for advertising creativity and engagement.
| Interactive Media Share Of Measured Advertising Investment |
| |
2005 |
2006 |
2007 |
2008f |
2009f |
| North America |
8 |
10 |
12 |
14 |
16 |
| USA |
8 |
10 |
12 |
14 |
16 |
| Latin America |
0.5 |
1 |
3 |
3 |
4 |
| Western Europe |
6 |
9 |
12 |
15 |
18 |
| Denmark |
6 |
9 |
12 |
18 |
24 |
| Sweden |
10 |
13 |
17 |
20 |
23 |
| UK |
10 |
16 |
20 |
25 |
30 |
| Emerging Europe |
2 |
3 |
4 |
6 |
7 |
| Russia |
2 |
3 |
5 |
11 |
7 |
| Asia-Pacific |
5 |
7 |
9 |
2 |
13 |
| India |
1 |
2 |
2 |
15 |
3 |
| Japan |
6 |
8 |
13 |
9 |
17 |
| China |
4 |
6 |
7 |
13 |
10 |
| Total |
6 |
8 |
11 |
|
15 |
| Base: 35 countries |
The recent global advertising revenue forecast from PricewaterhouseCoopers estimated that global revenues will rise by an average of 6.6% a year by 2012, reaching to $2.2 trillion (see Global Advertising Revenue To Reach $2.2 Trillion by 2012).
The Advertising Association’s Advertising Statistics Yearbook 2008, meanwhile, showed that UK advertising expenditure reached £19.4 billion in 2007, up 4.2% year on year (see UK Adspend Grew 4.2% In 2007).
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