A look at two recent local online ad spending forecasts and why they disagree by billions.
It seems that every major research and consulting company is publishing their latest findings on what marketers are doing with social media. Booz & Company is no exception. But their survey was designed to reveal how the social media function fits into existing organizations. And their results shed some light on how marketers expect they will continue to fund this effort.
While some traditional local media have taken a hit in the current economy, overall local ad spending is projected to increase led by higher digital ad spending.
Search on mobile devices continues to fuel marketing campaigns, but attribution management tools must evolve to take full advantage of the 16% to 22% mobile marketing ad spend predicted for 2012. eMarketer estimates U.S. marketers will invest almost $4.4 billion in mobile advertising by 2015.
The rising adoption of smartphones and tablets means more consumer attention will be focused on mobile platforms. And where consumer attention goes, marketing dollars are sure to follow. This line of thinking has resulted in ‘sharply higher’ projections being released by eMarketer for mobile marketing spending.
Return on investment for mobile ad campaigns is growing steadily but still remains less than half that for desktop search, according to Efficient Frontier. But because of mobile’s developing potential, ad spending on the platform is projected to grow to $4.4 billion by 2015 from $1 billion this year, according to eMarketer, with mobile seen as a key in driving foot traffic to stores.
eMarketer, NOVEMBER 2, 2011
More marketers than ever believe their brands should be engaging with consumers on social networks—and advertising is an increasingly successful tool for doing so. As a result, worldwide social network ad revenueswill surpass $8 billion in 2012 and approach $10 billion by 2013.
Spending in the US will reach $3.9 billion next year, up from $2.74 billion in 2011. In 2013, US advertisers are expected to spend $4.81 billion on social network advertising, up 23.4% over 2012.
Spending on digital video advertising is expected to grow substantially over the coming year despite major difficulties in implementing campaigns and measuring results. At the end of that time, video should account for nearly a quarter of online ad budgets, according to a Casale Media report. But a separate eMarketer report notes even more potential, with 85% of advertisers and ad buyers saying they would budget more for video if the chaotic nature of planning, creative and execution in the market were simplified.
- Global ad expenditure forecast to grow 3.6% in 2011 after a modest slowdown in expenditure growth towards the end of the year
- Growth forecast for 2012 remains a reassuring 5.3%
- This picture is consistent with a history of ad market growth after many previous stock market shocks, assuming the world economy does not deteriorate dramatically
- Developing markets to increase their share of the global ad market from 31.0% in 2010 to 34.9% in 2013
- Internet the fastest-growing medium between 2010 and 2013 (14.6% a year)
- Television to contribute most new ad dollars (46% of total)