Developing markets continue to expand far faster than developed markets. North America advertising is expected to grow by an average of 3.1% a year between 2010 and 2013, and Western Europe to grow by 3.4%. Japan is expected to grow just 0.9% a year, after a big drop in 2011 followed by the recovery of lost ground over the next two years.
Top Ten Ad Markets (US$ million, current prices) | |||||
Rank | 2010 Adspend | Rank | 2013 Adspend | ||
1 | USA | $151,665 | 1 | USA | $165,469 |
2 | Japan | 46,153 | 2 | Japan | 47,392 |
3 | China | 26,122 | 3 | China | 39,127 |
4 | Germany | 23,791 | 4 | Germany | 25,505 |
5 | UK | 18,086 | 5 | UK | 19,954 |
6 | Brazil | 14,716 | 6 | Brazil | 18,237 |
7 | France | 12,564 | 7 | France | 13,604 |
8 | Australia | 11,414 | 8 | Australia | 13,134 |
9 | Italy | 10,296 | 9 | Russia | 12,756 |
10 | Canada | 9,891 | 10 | Canada | 11,450 |
Source: ZenithOptimedia, July 2011 |
The sheer size of the US, 3.3 times the next-largest market, means it will contribute the most new ad dollars to the global market over the next three years despite its slow growth. However, the next five largest contributors are all developing markets: China (which contributes almost as much as the US, US$13.0 billion), Russia, Brazil, Indonesia and India. Overall, developing markets will contribute 62% of new ad dollars over the next three years.
The Ten Largest Contributors To Global Adspend Growth (2013 v 2010) | ||
Rank | Adspend growth (US$, MM) | |
1 | USA | $13,804 |
2 | China | 13,005 |
3 | Russia | 6,068 |
4 | Brazil | 3,521 |
5 | Indonesia | 2,768 |
6 | India | 2,639 |
7 | UK | 1,868 |
8 | South Africa | 1,797 |
9 | Australia | 1,719 |
10 | Germany | 1,714 |
Source: ZenithOptimedia, July 2011 |
The internet continues to grow at the fastest rate of any medium, says the report, at an average of 14.2% a year between 2010 and 2013. Display is the fastest-growing segment, growing by 16.4% a year, driven mainly by online video and social media. Streaming video ads are growing quickly, thanks to the emergence of do-it-yourself tools that have allowed local advertisers to enter the market.
Internet Advertising By Type (US$ Million, Current Prices) | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
Display | $18,329 | 21,799 | 25,275 | 29,530 | 34,400 |
Classified | 9,940 | 10,765 | 11,815 | 12,852 | 13,961 |
Paid search | 26,431 | 31,126 | 35,086 | 40,436 | 46,606 |
Total | 54,700 | 63,690 | 72,176 | 82,818 | 94,967 |
Source: ZenithOptimedia, July 2011 |
In most developed markets, social media sites are near the top of the list of most-popular websites, and they are often way ahead of their rivals in time spent by users. In the US, social media use has jumped 25% over the last year, and now accounts for 16% of all time spent online, and 34% of display impressions.
Advertising Expenditure By Medium (US$ Million, Current Prices) | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
Newspapers | $97,354 | 95,945 | 93,750 | 93,253 | 92,892 |
Magazines | 43,776 | 43,810 | 43,201 | 43,094 | 42,992 |
Television | 163,484 | 179,601 | 189,412 | 202,712 | 214,968 |
Radio | 31,917 | 32,259 | 33,025 | 34,397 | 35,604 |
Cinema | 2,099 | 2,310 | 2,440 | 2,593 | 2,746 |
Outdoor | 27,830 | 29,926 | 31,721 | 34,042 | 35,689 |
Internet | 54,700 | 63,690 | 72,176 | 82,818 | 94,967 |
Total | 421,161 | 447,541 | 465,724 | 492,910 | 519,857 |
Source: ZenithOptimedia, July 2011 |
Concluding, the report suggests this snapshot of the study:
For the complete PDF report from ZenithOptimedia, please visit here.
Good report but for the display $ numbers for print. It appears the report defines "newspapers" very narrowly because the conclusion that display advertising revenue from Internet is greater than print is incorrect ... by a significant margin. Clarity of terms would have helped to stem misinformation.
That said, we all know how the Internet is growing, but it remains a high-use and low-revenue model to date. Despite the attention SM gets, it contributes less than 4% to ad revenue totals.