Digital Advertising to Grow at Expense of All Other Media

What do media companies and ad space providers have to look forward to in 2013? A 4.9% increase in spending. This is also the piechartspendingyear that analysts expect to see erosion in the media ad share for all formats except digital and outdoor.

The global  media ad spending market should reach $545.75 billion in 2013 which is a 5.2% increase over 2012. The U.S. accounts for about 30% of that amount or $166 billion.  While the 4.9% increase in U.S. spending is slightly lower than it was last year, the growth rate is dwarf by the expected jump in other countries. China, for example, will see at least a 12% increase in 2013 ad spending, a figure that is in line with the strong economic growth in that country.

In the U.S., media companies will continue to deal with the shift of ad money away from traditional platforms and into new formats. Here’s how analysts believe the media spending pie will break out this year:

  • TV 38.7%
  • Digital 24.8% (including mobile  at 4.2%)
  • Newspapers 10.5% (print)
  • Magazines 8.8% (print)
  • Radio 9.2%
  • Directories 4.0%
  • Outdoor 4.1%

While outdoor will remain steady at 4.1% this year and through 2016, most other formats such as newspapers and magazines will continue to give way to digital. By 2016, digital will control 29.1% of ad money. Of that amount, 11.0% will go to mobile.

[Sources: Native Mobile Display Ads Mean Big Bucks. Emarketer​.com. 18 Dec. 2012. Web. 8 Jan. 2013; Total Media Ad Spending Worldwide. Emarketer​.com. Dec. 2012. Web. 8 Jan. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.