eMarketer expects US advertisers to spend $171.01 billion on paid media this year, up 3.6% over 2012 spending levels, according to our most recent forecast of US ad spending.
The 3.6% growth rate will be down somewhat from last year’s 4.3% increase, attributable largely to boosts from the Summer Olympics and a national election season. Spending growth for 2014 will be up, with help from the Winter Olympics, midterm elections and the FIFA World Cup, as growth rates hover between 3.1% and 4.1% for the rest of the forecast period.
eMarketer expects TV to continue to capture the largest share of paid ad spending in the US for the foreseeable future, though its percentage of total spending will drop slightly, from 39.1% in 2012 to 38.8% this year and 38.2% in 2017, as spending on TV ads grows more slowly than spending on paid media as a whole.
Digital media will gain the most share during the forecast period, rising from 22.3% of total spending in 2012 to nearly a quarter this year and 31.1% by 2017. Mobile alone will grow ad spending even more quickly than digital as a whole; mobile is expected to account for 15.8% of all ad spending by 2017, or $31.1 billion.
Targeting is a key advantage for digital video
Almost three-quarters of marketing professionals worldwide planned to increase their spending on branded video content or video ads in the next year, according to a survey conducted by AOL Networks in April 2013. More than 50% of that group said that the added investment would come from TV and display budgets. Only 4% of respondents planned to draw back spending on digital video ads.
In keeping with digital advertising’s frequent role as a direct-response vehicle, the study found that digital video ads beat out TV ads for achieving engagement goals: 58% of marketers thought digital video ads performed better than TV ads by this measure, compared with 15% who said engagement was worse for digital video ads.
Mar 7, 2013
Twitter made three deals recently all of which indicate the microblog platform believes its future is in TV ad dollars. Consider:
First, Twitter’s new Ads API allows companies like TBG Digital to buy promoted tweet campaigns against the nightly TV schedule, as if tweets were like TV ads. Why? Because people like to tweet while they watch TV. Here’s a chart from Twitter ad buyer TBG Digital showing the enhanced effect of advertising that also uses a Twitter campaign:
Second, Twitter recently acquired Bluefin Labs, a social TV measurement company. Twitter believes there is a strong, symbiotic connection between Twitter and TV watching — and it intends to prove that to advertisers with hard metrics.