Monday, June 13, 2011
Worldwide Ad Market Approaches $500 Billion
Asia-Pacific on Trajectory to Overtake North America in Total Ad Spending
NEW YORK, NY (June 13, 2011)—Advertising spending around the world is projected to increase 3.9% this year to more than $494 billion, according to a new forecast by eMarketer. Next year, the firm estimates total ad spending worldwide will reach $525.3 billion.
Total spending on directories, internet, magazines, newspaper, outdoor, radio and TV advertising will continue to grow at steady single-digit rates through 2015, according to the forecast. By that year, advertisers worldwide will be spending almost $600 billion on these media.
Global online ad spending will grow to $80.1 billion in 2011, up 17.2% from $68.4 billion in 2010. The internet’s share of total ad spending will grow to 16.2% this year, and by 2015, online advertising is forecast to make up 22.1% of all ad dollars worldwide.
Asia-Pacific is expected to increase its share of total ad spending worldwide over the next few years, and overtake North America as the worldwide leader in the next five years. eMarketer estimates ad spending in Asia-Pacific will reach $146.3 billion this year, compared to $165 billion in North America. By 2015, however, ad spending in Asia-Pacific will grow to $191.4 billion and a 32% share of global ad spending, while North America will reach just $185.8 billion and a 31.1% share that year.
However, Asia-Pacific still trails the West in terms of online advertising. Online ad spending in North America will reach $33.4 billion in 2011, trailed by Western Europe at $23.1 billion. Online ad spending in Asia-Pacific will reach $19.3 billion this year, and isn’t expected to surpass North America or Western Europe in the current forecasting period.
Total media ad spending in the US is expected to reach $165 billion this year, with online ad spending expected to top $30 billion. The US will lose some share of the global online ad market as other regions grow their spending, but eMarketer still expects nearly two in every five global online ad dollars to be spent in the US throughout our forecast period.
Between 2010 and 2015, Asia-Pacific, Eastern Europe, Latin America, and the Middle East and Africa will all gain share of the online market, though Asia-Pacific is the only one of those regions with significant levels of spending during the forecast. Online ad spending in Asia-Pacific will more than double from $16.4 billion in 2010 to $34.6 billion in 2015, with spending in China alone nearly tripling during that period from $3.7 billion to $11.3 billion.
eMarketer forms its estimates of advertising spending through a meta-analysis of data from dozens of sources, including research firms, ad agencies, investment banks and governmental organizations, as well as an analysis of global trends in the economy and advertising markets.
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.