Digital Poised to Capture 29% of Global Ad Spending by 2017
Earlier this week, I highlighted top-level findings in the Global Entertainment and Media (E&M) Outlook released by PriceWaterhouseCoopers (PwC). The report also predicts trends in several entertainment and media segments through 2017. The data on Internet advertising should be of particular interest to media companies and marketers.
PwC analysts see the Internet advertising segment reaching $185.4 billion by 2013. This level reflects a 13% growth rate over the $110.2 billion in spending that took place for digital advertising in 2012. The increase also puts online advertising solidly in second place, with 29% of all spending, behind the TV ad market.
What will the specific online formats have for market share in 2017? PwC expects that search will have about 41%, down slightly from the 43% peak it enjoyed last year. Display will continue to lose share and fall to 27% of the total by 2017. Growth rates for this format will slow and spending should be at about $50 billion in that year.
The market share and spending levels for other formats in 2017 will look like this:
- Classified revenues 11% ($20 billion)
- Online video 9.5% ($12 billion)
- Mobile 15% ($28 billion)
Online video and mobile will be the growth story for the next few years, a finding that has been echoed by other research studies.
Keep in mind that the PcW study encompasses spending in 50 countries, and in many cases, these countries are rapidly moving into the digital world. Their growth rates for the format may be higher than what is experienced in the U.S.