Ad Growth to Top Half-Trillion Mark, Digital Expansion Slows16 Jul, 2014 By: Doug McPherson
NEW YORK – The rate of global advertising growth will more than double this year, say analysts in a new eMarketer report. The report credits ad frenzies related to the World Cup and the Winter Olympics, and steady increases in online and mobile advertising for driving 2014 growth in total media ad spending.
Analysts say the global ad economy will expand 5.7 percent this year versus an expansion rate of 2.6 percent in 2013. Based on that level of growth, eMarketer forecasts worldwide ad spending will top the half trillion dollar mark this year, totaling $545.4 billion.
While digital continues to be a major contributor to the global ad expansion – reaching 25 percent of total expenditures this year – its rate of expansion is actually slowing down, according to eMarketer’s projections.
Worldwide digital ad spending is projected to grow 16.7 percent this year – up from a growth rate of 14.8 percent in 2013, but it will slow steadily through 2018. But because it will continue to expand faster than non-digital media, eMarketer projects digital’s share of total ad spending will also continue to climb, reaching nearly a third (32.3 percent) of global ad volume by 2018.
The report adds that within the digital category, advertising on tablets and smartphones will continue as a catalyst for growth. Worldwide mobile ad spending will increase 84.7 percent in 2014 to reach $32.7 billion this year, totaling nearly one-quarter of all digital advertising spending which includes paid media spending on ads of any format delivered to any Internet-connected device.