Digital Media, Technology Spend To Hit $1 Trillion This Year
Consumer spending on digital media content and technology is expected to grow 12% to $1 trillion this year, according to a new forecast by PQ Media.
Driving that growth is the widespread adoption of smartphones and broadband Internet, as well as a growing middle class in emerging markets like Brazil, India and China. Heavy rich media consumption by GenX and Millennial consumers in mature markets is also a factor.
This year’s growth would be on par with the 12% gain in 2012, to $860 billion. Looking further out, the study projects consumer spending on digital media and technology to grow annually at 10.8% to $1.4 trillion by 2017.
Total spending on broadband and wireless data subscriptions topped $100 billion last year, while four other digital media segments topped
$50 billion: digital games, apps and micro-transactions; multiplayer online games; computer tablets; and computer laptops and notebooks.
At same time, the study says traditional media consumption will slip 1.3% growth this year -- largely because live TV usage remains at the same levels as a year ago.
Among other highlights from PQ Media’s “Global Consumer Spending on Digital Media Content & Technology Forecast 2013-17”:
*U.S. consumer spending on digital media content and technology increased 7.1% to $158.79 billion in 2012, as the country remained the world’s largest digital media market. The U.S. is one of three nations that exceeded $100 billion in digital media expenditures, with China and Japan being the others.
*BRIC countries grew the fastest in the 2007-12 period, generating gains of more than 16% in 2012, led by Russia, up 18.2%. Brazil, India and China followed, and China will surpass the U.S. as the world’s largest market in 2017.
*The average consumer in the most tech-savvy markets spent more than $800 per capita on digital media in 2012, led by South Korea ($965.54), Japan and Australia, the same three countries that led the world in digital media usage.
*Digital media spending exceeded 50% of total media content and technology expenditures in 10 of the top 15 countries worldwide in 2012, with South Korea ranked first (84.2% share), followed by China and Russia.
*Per-capita spending on digital media will reach $259.48 in 2017, an increase of almost $100 million over 2012.
The study is the last in a series of reports released by PQ Media this year tracking digital media and advertising trends. “The third report ties together data from the first two publications in that consumer digital media spending is fostering growth in digital media consumption, which is driving the shift in advertising and marketing budgets to digital media channels,” stated PQ Media president and publisher Patrick Quinn.
The previous report in the series in June examined advertising and marketing spend in digital and alternative media.