Internet advertising soars as digital dominates marketing spend

New research from GroupM finds Internet advertising rose to US$99bn in 2012 and will exceed $113bn this year

Global Internet advertising spend is expected to exceed US$113bn (AUD$108.39bn) this year as marketers truly embrace digital as the mainstream channel for communication.

According to a new GroupM study entitled This Year, Next Year: Interaction 2013, Internet advertising spend leapt 16.2 per cent to $99bn in 2012, and accounted for 19.5 per cent of all globally measured total advertising expenditure. Leading the way was North America, with an estimated $38.3bn, followed by Asia-Pacific at $30.6bn.

According to the study, this year’s digital spend will reach $113.5bn, up 14.6 per cent year-on-year, and account for more than 21 per cent of all measured advertising investment. A catalyst for this boost is the rise in consumers’ ’media time’ online, which sat at 21 per cent in 2007 and is predicted to hit 30 per cent in 2013.

“The Internet no longer belongs to the old world and eastern Asia, nor does it depend upon evolution of infrastructure conceived a generation or more ago, but instead reaches every continent and economically active individual,” the report authors stated.

GroupM highlighted the rise of new video distribution channels and YouTube’s ascent as major disruptive forces against the continued dominance of television in terms of viewing and advertising investment. It also pointed out mobile devices are taking video out of the home and office, opening up more screen time for brands to connect with customers.

“Advertising is becoming more separated from the context in which it appears, and increasingly attached to ‘geo-personal’ big data sets that combine place, time and behaviour to increase its relevance,” the report stated.

The authors claimed the sheer growth of smartphone and table penetration will see broadband-capable mobile devices pass PC-based Internet consumption in the next 2-3 years, even in strong PC markets. The resulting rise of ‘second screening’ as a consumer behaviour is a potent opportunity for advertisers and content makers to have deeper interaction through three types of experiences: synchronised, asynchronous and simultaneous.

GroupM also looked into the impact of ecommerce and claimed the rate per user will stand at $859 in 2013, a 64 per cent increase since 2007. International ecommerce was valued at $917bn in 2012 and is predicted to rise to $1.1 trillion this year.

GroupM is a global media investment management group owned by WPP media agencies. The study was based on its media and marketing forecasting series drawn from data supplied by WPP worldwide.

GroupM’s key mobile predictions are:
  • Mobile is a more effective means of adding a valuable service layer to brands than it is as an advertising platform alone;
  • Data from location combined with behaviour will be the best proxy for consumer intent since the typed search query;
  • Mobile search will become the dominant mechanism for commercial discovery where location is a fact in satisfying consumer need, driving great results for advertisers and for Google;
  • Mobile advertising content other than video will need to focus on a call to action if short-term results are expected;
  • Advertisers need to improve mobile-ready assets to leverage the opportunity.

Follow CMO on Twitter: @CMOAustralia

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How can organisations debias their decisions?

​People whose personal details and experiences signal they come from racially diverse backgrounds are less likely than anglo or Caucasian candidates to make it through the first cut in recruitment processes. Even if the organisation says it values diversity.

Dr Karen Morley

Author, commentator

​ Coronavirus is rapidly changing customer behaviour: Is your marketing team adapting quickly enough?

The impact of coronavirus is far reaching with the true impact on the economy and businesses is unknown. While there are a few categories and brands experiencing growth, for the most part the crisis is wreaking havoc for large and small operators across many sectors including entertainment, tourism, retail, fitness, services and the list goes on.

Teresa Sperti

Founder, Arktic Fox

Why COVID-19 makes it more important than ever to move at the speed of the consumer

There is no doubt the challenges we are facing as businesses, advertisers and audiences with COVID-19 are all unprecedented. But with this comes an opportunity to take stock and re-evaluate current strategies, plans and processes to drive efficiencies and relevance in today's market.

Emma Macey

General manager, SuperNova Media

Great article. Well said!Https://www.virtualtradesho...Virtual conference

Curtis Okeefe

Can virtual events fill the digital conference gap?

Read more

Why these voice assistants are so popular nowadays? Maybe I should get one too? I am really curious.

Jill Kim

Aussie brands jump on voice-interaction bandwagon following Amazon Alexa's local launch

Read more

We encourage you to share your thoughts on your favorite social platform. Digital Marketing Consultant HyderabadDigital Marketing Analyst...

Chaitanya Nandigam

CMO interview: Charting a new customer course at a NFP fintech

Read more

Extremely insightful and well written. Thanks for the great article!

Nicole Brodie Nahum

Why COVID-19 makes it more important than ever to move at the speed of the consumer

Read more

Blockchain is one of the fastest growing technology in today's digital era. Industries like banking and finance are already using blockch...

Aniket Singh

Can blockchain deliver on its big advertising promises?

Read more

Latest Podcast

More podcasts

Sign in