Internet display ad spending leaps but TV holds premium spot in 2013

Latest Nielsen report into global advertising spend sees double-digit growth in display Internet advertising but TV continues to claim more than half of all ad dollars

The latest Nielsen quarterly report into global advertising spend has reported double-digital growth in digital display Internet advertising year-on-year.

The Global AdView Pulse report reported a 26.6 per cent rise in display Internet advertising expenditure over in the first half of 2013 compared to the previous year, led by growth in Asia-Pacific and Latin America. Outdoor ad spend also grew 5 per cent across all regions compared with 2012.

On the flip side, traditional media such as newspapers, magazines and radio all saw a drop in expenditure, although they remain second, third and fourth in terms of spending overall. Cinema advertising also took a dive, falling nearly 6 per cent year-on-year.

However, TV continues to hold its premium position and experienced a 4.2 per cent increase year-on-year. According to Nielsen, $0.57 of every dollar spent on advertising during the first half of the year was outlaid on reaching TV watchers.

According to Nielsen’s most recent global Trust in Advertising report, which looks at consumer views on advertising and brand messages, TV continues to be the most trusted paid-for medium, with 62 per cent of respondents completely or somewhat trusting ads on TV. Sixty-eight per cent of respondents to that survey also indicated they take action at least some of the time based on ads shown on TV.

“It’s clear that advertisers are wisely maximising their opportunities to reach consumers across platforms with TV ad dollars showing no signs of slowing, and noteworthy increases in Internet ad spend,” Nielsen global head of Advertiser Solutions, Randall Beard, commented.

Nielsen’s latest Trust in Advertising report, which was released in September, also found online banner ads and text ads on mobile phones had the lowest levels of trust with respondents (42 per cent and 37 per cent respectively). Search engine ads were trusted by 48 per cent of respondents, followed by online video ads and ads on social networks.

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Trust in advertising on branded websites increased 9 per cent to 69 per cent in 2013, while 67 per cent of consumers surveyed said they take action at least some of the time based on branded website ads.

Not surprisingly, word-of-mouth recommendations topped the list of most trustworthy brand information sources with 84 per cent of respondents.

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