Paid search spending typically rises every year in the 4th quarter as marketers seek to connect with holiday shoppers. This year should be no exception. With search accounting for nearly 50% of all digital ad spending, or a projected $19.76 billion in 2013, it’s worth looking at what’s happening in the format as the year draws to a close.
With the first quarter of 2013 now behind us, large media industry forecasters are issuing their revised guidance for the rest of the year. Yesterday, I blogged about ZenithOptimedia’s new outlook. MagnaGlobal’s new release for the U.S. is similarly optimistic with a 0.4% rise predicted for core media owners in 2013 and a 3.8% jump for 2014.
The transition of the media industry from traditional to digital formats is continuing its steady march. Last year, on a global basis, digital ad spending reached an all-time high. This year, the category should experience a 14.6% growth rate and account for 21% of measured ad spending.
One of the best parts of a regularly conducted survey is the ability to track trends. The CMO Survey, jointly produced by Duke University’s Fuqua School of Business and the AMA, provides excellent detail on where advertisers see the market heading. The most recent study in this series points to some very positive trends.
Who can blame marketers for feeling frustrated as they try to keep up with the rapidly changing world of selling and advertising. Many enterprises are barely managing social media and now they’re being told to improve content marketing and their use of big data if they want to stay afloat. The experts at Ipsos ASI are advising marketers to step back and consider the big picture before they rush into applying the latest trends to their businesses.
Marketers may not increase their ad budgets as much as some analysts expected for 2013. Magna Global analysts believe that the slow economic conditions may result in only a 1% boost in the ad market overall. For TV, the outlook varies by sector.
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 year that analysts expect to see erosion in the media ad share for all formats except digital and outdoor.
The projections being issued by major ad-buying agencies for next year vary but they all point to a slowdown. General economic conditions, globally, are being cited for the cautious outlook. The good news for next year is that online is still a bright spot in terms of growth.
In the State of Marketing 2012 study, CMO attitudes about the future are largely positive. These execs see themselves playing an expanded role in the C‑suite as the era of Big Data allows them to point to results of their investment in digital campaigns. They also believe that while a digital makeover is in order, traditional media remains an important part of the mix.
Auto sales have come back in a big way since the recession made a deep cut into the business for most dealers. These business owners say they’re looking at next year with an eye on keeping costs under control. For many, this means holding the line on their advertising budgets.
The newspaper industry as a whole has presented some sobering statistics lately. With readership and traditional revenue both falling, publishers have been laying off staff and looking for new ways to bring in business. Publishers couldn’t be blamed if they had a dour outlook for next year but a new industry survey shows newspaper owners are expecting improvement.