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Digital, Alternative Media Revs Could Hit $436 Billion

26 Jun, 2013 By: Doug McPherson


STAMFORD, Conn. – Total digital and alternative media revenue will reach $436.3 billion by 2017, increasing at a 14.1-percent clip annually, according to a new study from research firm PQ Media.

The report says mobile marketing and advertising accounted for nine of the top 10 fastest-growing digital and alternative media channels last year, driven mostly by rebounding economies and wider broadband and smartphone adoption.

Along with mobile, rising spending on Internet, digital out-of–home, product placement and other nontraditional media during the first half of 2013 equals 13.6-percent revenue growth to $256.7 billion worldwide for the full year. That growth rate would mark a slight improvement on the 12-percent gain last year.

The firm’s “Global Digital & Alternative Media Revenue Forecast 2013-2017” reflects projected advertising and marketing spending. Advertising is expected to account for nearly $104 million of the media total this year, with marketing accounting for almost $153 million. Advertising will rise 16.5 percent annually during the next four years, and marketing will grow more slowly at 12.3 percent.

Mobile will play a big part in that growth. Last year, mobile coupons were the fastest-gaining category in revenue – up 115 percent, with online coupons, mobile marketing apps, mobile E-mail, mobile video and rich media all up by 50 percent or more. The eye-catching figures are partly the result of mobile starting from a smaller base than Internet advertising.

Overall, mobile accounted for only 10.9 percent of digital and alternative (D&A) advertising in 2012, and 6.1 percent of marketing spend. Online advertising still dominates D&A advertising, with a 73.3 percent share of ad dollars, while the Internet garners 45.1 percent of overall marketing budgets. The top categories by revenue last year were online search, online display and classified, consumer event sponsorship, consumer event marketing and online E-mail.

D&A media spending is projected to make up nearly a third of global advertising and marketing revenue in 2017 – up from about 23 percent this year and 13.3 percent in 2007. The U.S. will remain the largest market in 2017, with China overtaking Japan and the U.K. to claim the No. 2 spot. Russia will be the fastest-growing market, trailed by India and China.


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