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Global Advertising Outlook
Name
January, 2013
TOTAL MEDIA
SPEND
3
GlobalWorldwide Total Media Ad Spend Continues To Grow
Total Media Ad Spending & Growth, 2011-2016 (in Billions)
$492.3 $492.3 $492.3 $492.3 $518.8 $518.8 $518.8 $518.8
$545.8 $545.8 $545.8 $545.8 $575.0 $575.0 $575.0 $575.0
$600.8 $600.8 $600.8 $600.8 $628.2 $628.2 $628.2 $628.2
2011 2012 2013 2014 2015 2016
3.6%3.6%3.6%3.6% 5.4%5.4%5.4%5.4% 5.2%5.2%5.2%5.2% 5.4%5.4%5.4%5.4% 4.5%4.5%4.5%4.5% 4.6%4.6%4.6%4.6%
CAGR = 4.9%CAGR = 4.9%CAGR = 4.9%CAGR = 4.9%
• Marketers will invest $518.8 billion in total media
advertising worldwide this year• By 2015, total media ad expenditures will pass
the $600 billion mark
• North America will lead the other global regions in total media ad spending
• Asia-Pacific, Eastern Europe, Latin America and the Middle East and Africa will each see higher than average ad spending gains through 2016
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Graph Source: eMarketer Estimates
4
Asia-PacificTotal Media Ad Spending Expected to Grow at a CAGR of 7%
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Total Media Ad Spending & Growth, 2011-2016 (in Billions)
$134.5 $134.5 $134.5 $134.5 $145.9 $145.9 $145.9 $145.9
$157.5 $157.5 $157.5 $157.5 $168.8 $168.8 $168.8 $168.8
$179.8 $179.8 $179.8 $179.8 $190.9 $190.9 $190.9 $190.9
2011 2012 2013 2014 2015 2016
2.9%2.9%2.9%2.9% 8.5%8.5%8.5%8.5% 7.9%7.9%7.9%7.9% 7.2%7.2%7.2%7.2% 6.5%6.5%6.5%6.5% 6.2%6.2%6.2%6.2%
CAGR = 6.9%CAGR = 6.9%CAGR = 6.9%CAGR = 6.9%
• With $145.9 billion in total advertising, Asia-Pacific had the second-largest advertising economy worldwide after North America in 2012
• Through 2016, eMarketer predicts total ad
spending in Asia-Pacific will grow faster than in North America, thanks to budding advertising economies and extraordinary growth rates in internet and mobile internet use in China,
Indonesia and India
• Japan’s setback in ad spending in 2011 (due to
the tsunami), combined with China’s robust
consumer base will help propel China ahead of Japan in ad investments by $3.4 billion in 2014
Graph Source: eMarketer Estimates
5
Western Europe – Total Media Ad Spending
Digital Media Spending Thrives in Western Europe, eMarketer Dec 2011
$29.2$29.2$29.2$29.2 $29.9$29.9$29.9$29.9 $30.7$30.7$30.7$30.7 $32.0$32.0$32.0$32.0 $32.3$32.3$32.3$32.3 $32.7$32.7$32.7$32.7
$7.7$7.7$7.7$7.7 $7.3$7.3$7.3$7.3 $7.5$7.5$7.5$7.5 $7.8$7.8$7.8$7.8 $8.0$8.0$8.0$8.0 $8.2$8.2$8.2$8.2$13.0$13.0$13.0$13.0 $13.0$13.0$13.0$13.0 $13.5$13.5$13.5$13.5 $13.9$13.9$13.9$13.9 $14.3$14.3$14.3$14.3 $14.7$14.7$14.7$14.7
$15.3$15.3$15.3$15.3 $15.6$15.6$15.6$15.6 $15.8$15.8$15.8$15.8 $16.0$16.0$16.0$16.0 $16.2$16.2$16.2$16.2 $16.4$16.4$16.4$16.4
$21.7$21.7$21.7$21.7 $22.3$22.3$22.3$22.3 $23.4$23.4$23.4$23.4 $24.3$24.3$24.3$24.3 $25.6$25.6$25.6$25.6 $26.2$26.2$26.2$26.2
$25.5$25.5$25.5$25.5 $26.2$26.2$26.2$26.2 $26.7$26.7$26.7$26.7 $27.2$27.2$27.2$27.2 $27.6$27.6$27.6$27.6 $28.0$28.0$28.0$28.0
2010 2011 2012 2013 2014 2015
Germany
UK
France
Italy
Spain
Others
Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 Total Media Spending in Western Europe 2010 –––– 2015 (BN)2015 (BN)2015 (BN)2015 (BN)
$112.4$112.4$112.4$112.4 $114.4$114.4$114.4$114.4 $117.6$117.6$117.6$117.6 $121.2$121.2$121.2$121.2 $124.0$124.0$124.0$124.0 $126.2$126.2$126.2$126.2
• Advertising across major platforms will slow down in the European region amidst economic slowdown, however,
online advertising is experiencing rapid growth• Total media ad spending in Western Europe will reach $126 Billion by 2015 from $114 billion in 2011 (CAGR~3%)
6
Middle East-AfricaOne of the Fastest Growing Markets Globally
Total Media Ad Spending, 2011-2016 (in Billions)
$16.0 $16.0 $16.0 $16.0 $17.2 $17.2 $17.2 $17.2
$18.3 $18.3 $18.3 $18.3 $19.6 $19.6 $19.6 $19.6
$20.8 $20.8 $20.8 $20.8 $22.0 $22.0 $22.0 $22.0
2011 2012 2013 2014 2015 2016
10.7%10.7%10.7%10.7% 7.5%7.5%7.5%7.5% 6.9%6.9%6.9%6.9% 6.9%6.9%6.9%6.9% 6.0%6.0%6.0%6.0% 5.7%5.7%5.7%5.7%
CAGR = 6.4%CAGR = 6.4%CAGR = 6.4%CAGR = 6.4%
• Ad spending in the Middle East and Africa remains the lowest in the world, and recent
political instability has aggravated this situation in some areas
• Yet the Middle East and Africa represent one of the fastest-growing markets globally. Advertisers are eager to reach this expanding population as rising income levels boost aspiration and consumption
• As North America began to lose share in 2011,
the emerging economies of the Middle East and
Africa saw spending increase
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
7
Latin America
Ad Spending in the Region to Rise 10% in 2013
Total Media Ad Spending, 2011-2016 (in Billions)
$31.2 $31.2 $31.2 $31.2 $34.7 $34.7 $34.7 $34.7
$38.1 $38.1 $38.1 $38.1 $42.7 $42.7 $42.7 $42.7
$46.8 $46.8 $46.8 $46.8 $51.3 $51.3 $51.3 $51.3
2011 2012 2013 2014 2015 2016
13.9%13.9%13.9%13.9% 11.0%11.0%11.0%11.0% 10.0%10.0%10.0%10.0% 12.0%12.0%12.0%12.0% 9.5%9.5%9.5%9.5% 9.8%9.8%9.8%9.8%
CAGR = 10.3%CAGR = 10.3%CAGR = 10.3%CAGR = 10.3%
• With its expanding population of increasingly affluent consumers, Latin America is one of the
world’s fastest-growing advertising markets
• eMarketer estimates that ad spending in the region will rise by 10% in 2013, and will continue
its double-digit growth through 2016• National and regional advertisers will fuel much
of this activity, but multinational advertisers may also devote more attention to Latin America if
economic uncertainty in North America and Europe continues to affect business prospects
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
TOTAL MEDIA
SPEND ACROSS
MEDIA
9
Western EuropeOnline Advertising to grow at 28%
InternetInternetInternetInternet
20.3%20.3%20.3%20.3%
NewspapersNewspapersNewspapersNewspapers
24.5%24.5%24.5%24.5%
MagazinesMagazinesMagazinesMagazines
12.4%12.4%12.4%12.4%
TVTVTVTV
30.3%30.3%30.3%30.3%
RadioRadioRadioRadio
5.6%5.6%5.6%5.6%
CinemaCinemaCinemaCinema
0.7%0.7%0.7%0.7%
OutdoorOutdoorOutdoorOutdoor
6.3%6.3%6.3%6.3%
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Newspapers Magazines TV Radio Cinema Outdoor Internet
Share of Ad Spend by Medium (%) 2011
2012201220122012
0000
2015201520152015
Total Ad Spending Across Mediums
2012 & 2015 (in millions)
----7.1%7.1%7.1%7.1% ----8.1%8.1%8.1%8.1% 1.8%1.8%1.8%1.8% 1.6%1.6%1.6%1.6% 3.1%3.1%3.1%3.1% 2.8%2.8%2.8%2.8% 27.5%27.5%27.5%27.5%
• Television & Newspapers demand a major chunk of the Total Media Ad Spends in Western Europe with Internet in 3rd place• Internet Advertising Spends are expected to grow at 27.5%, which is the highest growth rate across all media
Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012
10
Asia-PacificOnline Advertising to grow at 46%
InternetInternetInternetInternet
16.3%16.3%16.3%16.3%
NewspapersNewspapersNewspapersNewspapers
22.5%22.5%22.5%22.5%
MagazinesMagazinesMagazinesMagazines
5.1%5.1%5.1%5.1%
TVTVTVTV
41.8%41.8%41.8%41.8%
RadioRadioRadioRadio
4.2%4.2%4.2%4.2%
CinemaCinemaCinemaCinema
0.4%0.4%0.4%0.4%
OutdoorOutdoorOutdoorOutdoor
9.8%9.8%9.8%9.8%
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Newspapers Magazines TV Radio Cinema Outdoor Internet
Share of Ad Spend by Medium (%) 2011
Total Ad Spending Across Mediums
2012 & 2015 (in millions)
2012201220122012 2015201520152015
• Television & Newspapers demand a major chunk of the Total Media Ad Spends in Asia-Pacific with Internet in 3rd place• Internet Advertising Spends are expected to grow at 45.7%, which is the highest growth rate across all media
7.6%7.6%7.6%7.6% ----5.2%5.2%5.2%5.2% 18.9%18.9%18.9%18.9% 12.2%12.2%12.2%12.2% 14.2%14.2%14.2%14.2% 10.1%10.1%10.1%10.1% 45.7%45.7%45.7%45.7%
Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012
11
Latin America
Online Advertising to grow at 87%
InternetInternetInternetInternet
4.0%4.0%4.0%4.0%
NewspapersNewspapersNewspapersNewspapers
17.1%17.1%17.1%17.1%
MagazinesMagazinesMagazinesMagazines
6.5%6.5%6.5%6.5%
TVTVTVTV
62.3%62.3%62.3%62.3%
RadioRadioRadioRadio
6.1%6.1%6.1%6.1%
CinemaCinemaCinemaCinema
0.4%0.4%0.4%0.4%OutdoorOutdoorOutdoorOutdoor
3.6%3.6%3.6%3.6%
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
Newspapers Magazines TV Radio Cinema Outdoor Internet
Share of Ad Spend by Medium (%) 2011
Total Ad Spending Across Mediums
2012 & 2015 (in millions)
2012201220122012 2015201520152015
• Internet Advertising Spends are expected to grow at 86.5%, which is the highest growth rate across all media
28.5%28.5%28.5%28.5% 21.3%21.3%21.3%21.3% 30.8%30.8%30.8%30.8% 21.6%21.6%21.6%21.6% 21.5%21.5%21.5%21.5% 30.7%30.7%30.7%30.7% 86.5%86.5%86.5%86.5%
Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012
12
Middle East-AfricaOnline Advertising to grow at 70%
InternetInternetInternetInternet
2.5%2.5%2.5%2.5%
NewspapersNewspapersNewspapersNewspapers
34.0%34.0%34.0%34.0%
MagazinesMagazinesMagazinesMagazines
4.0%4.0%4.0%4.0%
TVTVTVTV
50.2%50.2%50.2%50.2%
RadioRadioRadioRadio
3.7%3.7%3.7%3.7%
CinemaCinemaCinemaCinema
0.6%0.6%0.6%0.6%
OutdoorOutdoorOutdoorOutdoor
5.0%5.0%5.0%5.0%
$-
$0.5
$1.0
$1.5
$2.0
$2.5
Newspapers Magazines TV Radio Cinema Outdoor Internet
Share of Ad Spend by Medium (%) 2011
Total Ad Spending Across Mediums
2012 & 2015 (in millions)
2012201220122012 2015201520152015
• Internet Advertising Spends are expected to grow at 69.9%, which is relatively higher than most of the other media• Total Online Ad Spends is very small compared to other media in Middle East-Africa
---- 0.9%0.9%0.9%0.9% ---- 5.1%5.1%5.1%5.1% 9.7%9.7%9.7%9.7% 2.1%2.1%2.1%2.1% ---- 4.3%4.3%4.3%4.3% 16.2%16.2%16.2%16.2% 69.9%69.9%69.9%69.9%
Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2012
ONLINE
ADVERTISING
14
GlobalOnline Ad Spending Drives Growth
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Total Online Ad Spending & Growth, 2011-2016 (in Billions)
$87.3 $87.3 $87.3 $87.3
$102.8 $102.8 $102.8 $102.8
$118.4 $118.4 $118.4 $118.4
$134.7 $134.7 $134.7 $134.7 $149.2 $149.2 $149.2 $149.2
$163.0 $163.0 $163.0 $163.0
2011 2012 2013 2014 2015 2016
17.7%17.7%17.7%17.7% 19.8%19.8%19.8%19.8% 21.7%21.7%21.7%21.7% 23.4%23.4%23.4%23.4% 24.8%24.8%24.8%24.8% 26.0%26.0%26.0%26.0%
CAGR = 12.2%CAGR = 12.2%CAGR = 12.2%CAGR = 12.2%
• Worldwide digital ad spending is projected to nearly double between 2011 and 2016, rising from $8.3 billion to $163 billion
• Globally, digital ad spending will represent nearly 20% of total media ad spending this year. It will grow to 26% of the total in 2016
• Marketers in North America will lead the global market in digital ad spending
Graph Source: eMarketer Estimates
15
GlobalInternet’s share of total ad spending worldwide will jump from 19.8% in 2012 to 25.9% in 2016
Source: eMarketer – Total Media Ad Spending Worldwide, 2010-2016 and Digital Ad Spending Worldwide, 2010-2016
Online Ad Spend share of Total Media Spend, 2012 & 2016 (in Billions)
Online Advertising – Strongest Performing Ad Channel
2012201220122012
Total = $518.8 BillionTotal = $518.8 BillionTotal = $518.8 BillionTotal = $518.8 Billion
2016201620162016
Total = $628.2 BillionTotal = $628.2 BillionTotal = $628.2 BillionTotal = $628.2 Billion
OnlineOnlineOnlineOnline
$102.8 (19.8%)$102.8 (19.8%)$102.8 (19.8%)$102.8 (19.8%)
OnlineOnlineOnlineOnline
$163.0 (25.9%)$163.0 (25.9%)$163.0 (25.9%)$163.0 (25.9%)
OtherOtherOtherOther
$416.0 (80.2%)$416.0 (80.2%)$416.0 (80.2%)$416.0 (80.2%)
OtherOtherOtherOther
$465.2 (74.1%)$465.2 (74.1%)$465.2 (74.1%)$465.2 (74.1%)
Online Online Online Online
AdvertisingAdvertisingAdvertisingAdvertising
More Measurable
More Effective
More Time Spent
Graph Source: eMarketer Estimates
16
GlobalNorth America & Western Europe dominate Online Ad Spend but APAC will surpass Western Europe
by 2016
Source: eMarketer – Emerging Markets in Asia-Pacific Propel Digital Ad Spend Growth in the Region, January 2013
Online Ad Spend Worldwide, By Region, 2010 & 2015 (in Billions)
2011
2016
2011 2016
North America $34.4 $59.8
Western Europe $25.0 $38.7
APAC $21.9 $48.6
Eastern Europe $2.9 $5.8
LATAM $2.5 $7.3
MEA $0.6 $2.9
• North America and Western Europe dominate
the world in online ad spending, but opportunity
for growth remains significant, particularly in the burgeoning digital advertising markets of Indonesia, Brazil, Argentina, India and China, which will help drive spending worldwide
• Asia-Pacific is catching up to North America and will surpass Western Europe by 2016, when Asia Pacific’s portion of online ad spending will be 48.6%—over 9 percentage points higher than Western Europe’s
17
Asia-PacificIncreasing Online Population Drives Online Ad Spend
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Online Ad Spending & Growth, 2011-2016 (in Billions)
$21.9 $21.9 $21.9 $21.9
$27.3 $27.3 $27.3 $27.3
$32.5 $32.5 $32.5 $32.5
$37.7 $37.7 $37.7 $37.7
$43.0 $43.0 $43.0 $43.0
$48.6 $48.6 $48.6 $48.6
2011 2012 2013 2014 2015 2016
16.2%16.2%16.2%16.2% 18.7%18.7%18.7%18.7% 20.6%20.6%20.6%20.6% 22.3%22.3%22.3%22.3% 23.9%23.9%23.9%23.9% 25.4%25.4%25.4%25.4%
CAGR = 15.5%CAGR = 15.5%CAGR = 15.5%CAGR = 15.5%
• Asia-Pacific will push past Western Europe to become the region with the second highest digital ad expenditures in 2013, driven by rapid growth in Indonesia, India and China
• The fastest growth in spending will come from the emerging markets of Indonesia, India and Mexico—though that growth is coming from a relatively small base of spending
Graph Source: eMarketer Estimates
18
Online Ad Spending, 2011-2016 (in Billions)
$25.0 $25.0 $25.0 $25.0 $27.7 $27.7 $27.7 $27.7
$30.7 $30.7 $30.7 $30.7 $33.8 $33.8 $33.8 $33.8
$36.3 $36.3 $36.3 $36.3 $38.7 $38.7 $38.7 $38.7
2011 2012 2013 2014 2015 2016
Western EuropeOnline Ad Spending to Grow at a CAGR of 9%
20.9%20.9%20.9%20.9% 23.0%23.0%23.0%23.0% 24.9%24.9%24.9%24.9% 26.7%26.7%26.7%26.7% 28.1%28.1%28.1%28.1% 29.5%29.5%29.5%29.5%
CAGR = 8.7%CAGR = 8.7%CAGR = 8.7%CAGR = 8.7%
• Even as Western Europe loses share to other
regions, their total media spending per person
(along with North America’s) throughout eMarketer’s forecast period will remain higher than those of other regions
• Western Europe also boasts the second highest regional levels of digital ad spending per internet user, at $112 this year growing to $133 by 2016
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
19
Online Ad Spending & Growth, 2011-2016 (in Billions)
$0.6 $0.6 $0.6 $0.6 $0.9 $0.9 $0.9 $0.9
$1.3 $1.3 $1.3 $1.3
$1.8 $1.8 $1.8 $1.8
$2.3 $2.3 $2.3 $2.3
$2.9 $2.9 $2.9 $2.9
2011 2012 2013 2014 2015 2016
Middle East-AfricaImproving Infrastructure & Mobile Phones Aid Growth in Online Ad Spend
3.7%3.7%3.7%3.7% 5.1%5.1%5.1%5.1% 7.0%7.0%7.0%7.0% 9.2%9.2%9.2%9.2% 11.1%11.1%11.1%11.1% 13.3%13.3%13.3%13.3%
CAGR = 35.4%CAGR = 35.4%CAGR = 35.4%CAGR = 35.4%
• As a percent of total ad spending, Middle East
and Africa’s digital spending is just 7% of all ad
dollars going toward digital media• eMarketer expects this percentage to nearly
double by 2016, but the region will still be far behind the near-30% of ad spending devoted to digital in Western Europe and North America
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
20
Online Ad Spending & Growth, 2011-2016 (in Billions)
$2.5 $2.5 $2.5 $2.5
$3.4 $3.4 $3.4 $3.4
$4.2 $4.2 $4.2 $4.2
$5.3 $5.3 $5.3 $5.3
$6.3 $6.3 $6.3 $6.3
$7.3 $7.3 $7.3 $7.3
2011 2012 2013 2014 2015 2016
Latin America
Annual Value of Online Ads to Double by 2015
7.9%7.9%7.9%7.9% 9.7%9.7%9.7%9.7% 10.9%10.9%10.9%10.9% 12.4%12.4%12.4%12.4% 13.4%13.4%13.4%13.4% 14.1%14.1%14.1%14.1%
CAGR = 21.2%CAGR = 21.2%CAGR = 21.2%CAGR = 21.2%
• Latin America will post above-average double-digit growth through 2016, while growth in North America and Western Europe will remain robust but more moderate
• Latin America is second only to the Middle East and Africa as the fastest-growing digital ad market in the world
• Between 2012 and 2016, digital ad spending will climb from 9.7% to 14.1% of total media ad
expenditures in Latin America. The share of digital ad spending in Mexico will double within the next four years, rising from 11.9% to 22.1%
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
MOBILE
ADVERTISING
22
GlobalNorth America & Western Europe Drive Mobile Advertising
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Mobile Ad Spending & Growth, 2011-2016 (in Billions)
$4.1 $4.1 $4.1 $4.1
$8.4 $8.4 $8.4 $8.4
$13.6 $13.6 $13.6 $13.6
$20.3 $20.3 $20.3 $20.3
$28.5 $28.5 $28.5 $28.5
$36.9 $36.9 $36.9 $36.9
2011 2012 2013 2014 2015 2016
105.8105.8105.8105.8
%%%%61.6%61.6%61.6%61.6% 49.5%49.5%49.5%49.5% 40.2%40.2%40.2%40.2% 29.6%29.6%29.6%29.6%
CAGR = 44.7%CAGR = 44.7%CAGR = 44.7%CAGR = 44.7%
• Worldwide mobile ad spending will reach $13.6
billion this year
• Rapid mobile internet adoption combined with the continued development of mobile ad networks and greater choice of mobile ad formats will significantly enhance how marketers use mobile to engage consumers, especially in the more advanced advertising economies of North America and Western Europe
• By 2016, investments in mobile advertising will nearly triple to $36.9 billion
Graph Source: eMarketer Estimates
74.6%74.6%74.6%74.6%
23
GlobalMobile Ad Spending Rising Quickly Driven by Developments in Device & Mobile Web Adoption
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Mobile Ad Revenues Worldwide, By Region, 2011 & 2016 (in Millions)
2011
2016
2011 2016
Asia-Pacific $1,895.6 $6,191.6
North America $1,261.7 $21,391.7
Western Europe $845.0 $8,389.5
Rest of the World $82.5 $900.6
• eMarketer predicts that worldwide mobile advertising revenues will grow over nine-fold
between 2011 and 2016, increasing from $4
billion to nearly $37 billion• Asia-Pacific previously had the largest mobile ad
expenditures worldwide, primarily due to advanced mobile advertising markets in Japan and South Korea
• However, consumers are rapidly adopting smartphones and tablets in the US, and marketers there are taking advantage of growing mobile ad opportunities. In 2015, an expected rise in mobile ad investments in Western Europe will push Asia-Pacific to third place
$36,873.3 Million$36,873.3 Million$36,873.3 Million$36,873.3 Million
$4,084.8 Million$4,084.8 Million$4,084.8 Million$4,084.8 Million
24
Asia-PacificJapan, China & India Experience Significant Growth in Mobile Ad Spend
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
Mobile Ad Spending & Growth, 2011-2016 (in Billions)
$1.9 $1.9 $1.9 $1.9
$2.7 $2.7 $2.7 $2.7
$3.4 $3.4 $3.4 $3.4
$4.3 $4.3 $4.3 $4.3
$5.3 $5.3 $5.3 $5.3
$6.2 $6.2 $6.2 $6.2
2011 2012 2013 2014 2015 2016
40.0%40.0%40.0%40.0% 28.6%28.6%28.6%28.6% 26.4%26.4%26.4%26.4% 23.2%23.2%23.2%23.2% 16.5%16.5%16.5%16.5%
CAGR = 23.6%CAGR = 23.6%CAGR = 23.6%CAGR = 23.6%
• Asia-Pacific previously had the largest mobile ad expenditures worldwide, primarily due to Japan and South Korea’s advanced mobile advertising markets
• However, with the US adoption of smartphones and tablets, North America will surpass Asia-Pacific this year by $3.9 billion
• Mobile ad expenditures in Asia-Pacific grew at a slower pace due to the mobile ad economies already in place in the region
• By 2016, mobile ad spending in Asia Pacific will total $6.2 billion, driven by a surge in growth in China, India and Indonesia. Japan’s share is expected to drop to 43.1% at that time due to China’s dramatic expansion in the region
Graph Source: eMarketer Estimates
45.6%45.6%45.6%45.6%
25
Western EuropeLeads the Way in Mobile Advertising
Mobile Ad Spending & Growth, 2010-2015 (in Billions)
$0.8 $0.8 $0.8 $0.8
$1.6 $1.6 $1.6 $1.6
$2.7 $2.7 $2.7 $2.7
$4.3 $4.3 $4.3 $4.3
$6.4 $6.4 $6.4 $6.4
$8.4 $8.4 $8.4 $8.4
2011 2012 2013 2014 2015 2016
95.0%95.0%95.0%95.0% 66.0%66.0%66.0%66.0% 57.0%57.0%57.0%57.0% 48.0%48.0%48.0%48.0% 32.0%32.0%32.0%32.0%
CAGR = 50.2%CAGR = 50.2%CAGR = 50.2%CAGR = 50.2%
92.0%92.0%92.0%92.0%
• Western Europe’s developed economies and high smartphone usage will help push advertisers in the region to allocate larger portions of their budgets toward mobile through 2016
• Across Western Europe, mobile’s share of digital ad spending will climb to 22% in 2016 from 6% in 2012
• By 2016, 28% of digital ad spending in the UK will be devoted to mobile advertising, while more than 18% of total digital dollars in Denmark, Germany, Italy and Norway will come from mobile
Graph Source: eMarketer Estimates
Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
AD SPEND BY
SECTOR
Global Sector: Overall Change
Source: Nielsen Global AdView Pulse Q3 2012
Global Category Share of Spend YTD 2012
Source: Nielsen Global AdView Pulse Q3 2012
29
Internet – Global Trend by SectorTelecommunications Sector has grown the most followed by Media, Automotive & FMCG
Sectors - % Change Year to Date,2011 - 2012
6%6%6%6%
2%2%2%2%
4%4%4%4%
----4%4%4%4%
4%4%4%4%4%4%4%4%
6%6%6%6%
----11111111%%%%
1%1%1%1%
6%6%6%6%
7%7%7%7%
5%5%5%5%
Source: Nielsen Global Ad View Pulse, Q3 2012
Top 20 Global Spenders YTD 2012
Source: Nielsen Global AdView Pulse Q3 2012
Top Categories by Region: Europe and Asia-Pacific
Asia-PacificEurope
Source: Nielsen Global AdView Pulse Q3 2012
Top Categories by Region: Latam and Middle East/Africa
Latin America Middle East/Africa
Source: Nielsen Global AdView Pulse Q3 2012
33
Internet – Global Trend by SectorFMCG & Entertainment Sectors Spend Online
Source: Nielsen Global Ad View Pulse, Q3 2012
Sectors - % Share of Spend, 2011 & 2012
13.713.713.713.7
4.74.74.74.7
11111111
9.99.99.99.911.211.211.211.2
10.410.410.410.4
11.711.711.711.7
1.51.51.51.5 10.910.910.910.9
4.54.54.54.5
9.99.99.99.9
8.08.08.08.0
3.33.33.33.3
5.25.25.25.2
4.94.94.94.9
11.711.711.711.7
5.35.35.35.3
25.125.125.125.1
9.99.99.99.9
11.211.211.211.27.57.57.57.5
5.75.75.75.7
Automotive
Clothing & Accessories
Distribution Channels
Durables
Entertainment
Financial
FMCG
Healthcare
Industry & Services
Media
2011201120112011 2012201220122012
• FMCG, Entertainment and
Industry and Services Sectors spend the most on online advertising.
• The Healthcare Sector has
grown the most, sharing 9.9% of the total spend in 2012 from 1.5% in 2011.
US Ad Spend
Top US Product Categories & Digital Ad Revenues
US: At $15.41 billion, Google’s ad revenue alone will account for 41.3% of total digital ad revenues in 2012
Mobile Ad Spending Trends
Mobile Ad Spending Methodology
Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms, and consumer mobile usage trends.
Mobile ad spending in North America to grow to $21.4 billion by 2016, a three-fold increase from 2013
US: Top 10 Advertisers in Internet Paid Search
Grand Total
(000)
Top 10 Advertisers
Ask.com $ 200,085.40
NOT ITEMIZED-INTERNET SITES NEC* $ 132,111.10
Amazon $ 91,684.40
AT&T $ 84,089.50
Microsoft $ 64,969.10
University of Phoenix $ 61,887.20
Verizon $ 41,225.10
State Farm $ 39,714.60
Home Depot $ 39,508.90
Target Discount Department Store $ 39,050.50
Source: Kantar Media, Stradegy, YTD 2012 (Jan-Nov)* Not-Itemized advertising does not receive a specific Brand. Examples of this
include the following: Classified Ads and advertising in directories including Schools & Camps, Financial, Kennels, Game Breeders, Where-To-Go, Real
Estate, Restaurants, Hotels & Resorts, Postage Stamps & Coins, Business Propositions, etc.
US: Top 10 Advertisers in Online Video
US OnlineVideo Units
Top 10 Advertisers
AT&T 6,473
Charles Schwab 6,317
Franklin Templeton 5,852
Verizon 5,146
GorillaTrades.com 4,598
Kmart Discount Department Store 4,570
Goldman Sachs & Co. 3,298
Fisher-Price 3,259
Paramount Pictures 3,160
Dodge 3,107
Source: Kantar Media, Stradegy, YTD 2012 (Jan-Nov)
US Online Video Methodology
Kantar Media began video ad collection in 2007 using a spider technology. The spider is compatible with all digital pre, mid and post roll video formats and media players.
A spider is directed to a specific site entry URL, and navigates its way from there through the site. As it visits web pages, the spider performs several processes in real time:
1) Identifies video content originating from ad servers
2) Digitizes the audio/visual content and creates signatures
3) Matches known videos
4) Detects new videos
Appendix
European Online Display Spending Is Set To Rise
December 2011 “Western European Online Display Advertising Forecast, 2011 To 2016”
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