Online ad revenues to skyrocket in five years time

The online ad market is growing by leaps and bounds, according a new report that predicts it to reach $143 billion worldwide in the next five years.

International spending on Internet advertising is expected to rise by almost 50 percent over the next five years, according to a new report from a team of analysts tracking the global online ad market. The report, issued today by research and analytics firm Digital TV Research and entitled Online Advertising Forecasts, predicts that ad spending online will reach $143 billion dollars in 2017.

That figure is a significant rise over the anticipated figure for 2012 – $92 billion – and more than double the amount spent on Internet advertising just two years ago, which amounted to $66 billion. According to Digital TV Research, what’s driving the increased rate of growth is the changing demographics of the Internet itself; simply, the more people that get online, the more important online advertising will become. Specifically, the report says, the growth of broadband Internet worldwide plays an important role: By 2017, the number of homes expected to have broadband Internet access is estimated at 745 million across 40 countries (The report covers only 40 countries), which represents almost half (49.2 percent) of total households in those countries. In comparison, those figures for 2010 were 473 million, or 33.5 percent of total households.

The report goes on to estimate that, despite the overall leap in spending, individual cost-per-household won’t dramatically increase; author Simon Murray suggests that it may rise as little as $26 per broadband household, from 2010′s $139 per household to somewhere in the region of $165 per household.

Overall, America will continue to lead the way in Internet ad spending. Its ad spending is expected to increase by more than double by 2017, from the 2010 figure of $26 billion to $58 billion in five years’ time; overall, however, its share of the international online advertising revenue pie is anticipated to stay the same between the two periods, at 40 percent. The United Kingdom is also expected to remain in second place in the global spend table when it comes to online advertising, with its spending reaching an estimated $11.7 billion by 2017. China is expected to overtake Japan for third place at some point in 2014, with its ad revenues projected to grow from the 2010 figure of $2,600 million to $10,808 in 2017.

These figures, however, only tell part of the story – As Digital TV Research admits, the report offers numbers “for advertising expenditure via fixed broadband, and therefore do[es] not include mobile advertising.” That may skew thinking, as mobile ad spending is itself is growing significantly. Estimates from eMarketer earlier this year projected US mobile ad spending to almost double in 2012 compared with 2011 ($2.4 billion compared with $1.23 billion in the previous year), with the trend expected to continue as smartphones become more and more accepted as “the norm” by the mass market of users. Admittedly, $2.4 billion is a long way down from $92 billion, but nonetheless: An almost 100 percent increase year-on-year? That’s got to be worth paying attention to.

Source : digitaltrends[dot]com

How Much Do Apple, Google, Amazon Spend on Advertising?

Last year, U.S. tech company advertisers continued to increase ad and promo spending billions of dollars, so much so that Google, Amazon and Apple are listed among the six companies with the highest ad-spending growth rates.

Hey, wait a minute, what are these companies spending their money on?

The money is going into unmeasured spending like search marketing, online videos, social media, promotion and direction marketing

Let’s take a look at this awesome infographic made by Muhammad Saleem telling us about how Tech and Advertising spends are increasing and where the money is going

[via OnlineBusinessDegree.org]

Tags: Amazon Advertising, Apple Advertising, Google Advertising

Source : techtalkafrica[dot]com

Digital music spending to outstrip analog spending globally by 2015

Music industry purists, beware: A new report from industry analysts predicts that digital spending on music will pass physical sales internationally by 2015, and as early as this year in certain markets - including the United States.

Here’s a potentially surprising piece of trivia masquerading as news (or vice versa, dependent on whether or not you work in the music industry): According to analysts, we’re just three years away from seeing global digital music sales surpass physical music sales, with digital sales set to rise more than 15 percent worldwide by the end of the year. The real question is, which part of that is the most surprising?

The prediction comes courtesy of international market research company Strategy Analytics, specifically the company’s latest “Global Recorded Music Forecast” report. The report explains that digital music spending will represent 39 percent of global music spending this year, with streaming digital content rising by an impressive 40 percent throughout the year to become the dominant growth engine for the digital format (Download growth is at 8.5 percent worldwide); however, downloads still represent the bulk of digital spending generating $3.9 billion to streaming’s $1.1 billion. Overall digital spending is expected to be up 17.8 percent for 2012 – reaching $8.6 billion – compared with a 12.1 percent decline in physical sales.

Based on the movement of the markets, Strategy Analytics is predicting that 2015 will be the first year where digital global spending outstrips physical spending in terms of music, although it points out that some countries – amongst them, Sweden, South Korea and the US – are already ahead of the curve in that respect. It’s that last point that reinforces my point from above: Doesn’t it feel as if digital music spending should already be above physical spending by this point? Hasn’t analog music become an entirely niche market already?

That attitude likely comes from my location-based thinking. According to the Global Recorded Music Forecast, digital music spending in the US is almost double what it is, percentage-wise, in the rest of the world – 41 percent to 22 percent – which, combined with the decline in physical spending, underscores the feeling of digital being where it’s at, these days (Interestingly, despite the increased spending percentage for digital, the decline in physical music spending in the US is actually slower than globally; just 9 percent). In fact, the US is well ahead of the curve when it comes to the digital tipping point; we’re expected to see digital music spending outweigh analog as early as this year, if predictions hold.

According to Strategy Analytics director of digital media Ed Barton, this changeover may mean a turnaround in fortunes for the American music industry. “Having stabilized long term revenue declines resulting from the downsizing of packaged music spending,” he explained, “the industry will be hoping that digital can rebuild the US music market to something approaching its former stature.”

A large part of that rebuilding effort will rely on the continued success of the streaming music format; as with the global view, streaming is growing faster in the US than downloading, with growth rates hitting 27.8 percent against downloading’s 6.7 percent. As Barton points out, “this [download] market is maturing and spending is flattening in all key territories. Streaming music services such as Spotify and Pandora will be the key growth drivers over the next five years as usage and spending grow rapidly.” Good news for Spotify, Pandora and the like, but maybe not such good news for the record labels that were hoping to see a renewed emphasis on actual sales any time soon..

Source : digitaltrends[dot]com