US online ad spend to exceed print in 2012

MUMBAI: US online ad spend that grew 23 per cent to $32.03 billion in 2011 is expected to grow an additional 23.3 per cent to $39.5 billion this year, pushing it ahead of total spending on print newspapers and magazines, according to a new forecast by eMarketer.

Print advertising spend is expected to fall to $33.8 billion in 2012, from $36 billion in 2011.

eMarketer‘s previous US online advertising forecast from July 2011 was among the more bullish estimates issued during the year, yet consistently stronger-than-expected results from major industry players and the IAB/PwC through the first three quarters of 2011 contributed to the upward revision.

eMarketer principal analyst David Hallerman said, "Advertisers‘ comfort level with integrated marketing is greater than ever, and this is helping more advertisers and more large brands put a greater share of dollars online."

"The growing amount of time consumers spend with digital platforms and advertisers‘ view of the internet as a more measurable medium, especially as the soft economy forces businesses to be more accountable with their ad dollars—are both significant contributors to digital‘s growing footprint," Hallerman added.

Despite concerns about the economy among agencies and marketers, total ad spending in the US is expected to continue to rebound in 2012 after rising 3.4 per cent to $158.9 billion in 2011. US total media ad spending will grow an estimated 6.7 per cent to $169.48 in 2012, boosted by the national elections and summer Olympics in London, eMarketer estimates.

The research company estimates for total media ad spending growth remain slightly more confident, a result of the rapid rise of digital advertising and brands‘ continued confidence in television advertising, despite increasingly fragmented viewership and the soft economy.

Spending on TV advertising grew 2.8 per cent in 2011 to $60.7 billion, eMarketer estimates. This year, TV ad spending will grow an estimated 6.8 per cent to $64.8 billion.

In the newspaper industry, digital revenues remain a sole bright spot. US digital ad revenues for newspapers will grow 11.4 per cent to $3.7 billion, after rising 8.3 per cent to $3.3 billion in 2011. Print advertising revenues at newspapers, however, will dip an additional 6 per cent to $19.4 billion in 2012, after falling 9.3 per cent to $20.7 billion in 2011.

In case of magazines, US print ad revenues are expected to rise 0.5 per cent to $15.34 billion in 2012, up from $15.3 billion last year.US digital advertising spending at magazines is expected to grow 19.3 per cent to $3.3 billion this year, after growing 18.8 per cent to $2.7 billion in 2011.

Radio advertising spending will grow 3.6 per cent to $16.7 billion in 2012, after growing 1.3 per cent to $16.1 billion in 2011 while spending on outdoor advertisements will grow 6.3 per cent to $6.8 billion. Directories ad spending will decline 8.5 per cent to $7.5 billion this year.

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