Global Ad Spend by Vertical - Jan 2013

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  • 1. Global AdvertisingOutlookNameJanuary, 2013
  • 2. TOTAL MEDIA SPEND
  • 3. Global Worldwide Total Media Ad Spend Continues To Grow Total Media Ad Spending & Growth, • Marketers will invest $518.8 billion in total media 2011-2016 (in Billions) advertising worldwide this year • By 2015, total media ad expenditures will pass the $600 billion mark • North America will lead the other global regions $600.8 $628.2 in total media ad spending $575.0 $518.8 $545.8 • Asia-Pacific, Eastern Europe, Latin America and $492.3 the Middle East and Africa will each see higher than average ad spending gains through 2016 CAGR = 4.9% 3.6% 5.4% 5.2% 5.4% 4.5% 4.6% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 20133
  • 4. Asia-Pacific Total Media Ad Spending Expected to Grow at a CAGR of 7% Total Media Ad Spending & Growth, • With $145.9 billion in total advertising, Asia- 2011-2016 (in Billions) Pacific had the second-largest advertising economy worldwide after North America in 2012 • Through 2016, eMarketer predicts total ad spending in Asia-Pacific will grow faster than in $190.9 North America, thanks to budding advertising $179.8 $157.5 $168.8 economies and extraordinary growth rates in $145.9 internet and mobile internet use in China, $134.5 Indonesia and India CAGR = 6.9% • Japan’s setback in ad spending in 2011 (due to the tsunami), combined with China’s robust consumer base will help propel China ahead of 2.9% 8.5% 7.9% 7.2% 6.5% 6.2% Japan in ad investments by $3.4 billion in 2014 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 20134
  • 5. Western Europe – Total Media Ad Spending Total Media Spending in Western Europe 2010 – 2015 (BN) $121.2 $124.0 $126.2 $114.4 $117.6 $112.4 $28.0 $27.2 $27.6 Germany $26.2 $26.7 $25.5 $26.2 UK $24.3 $25.6 $22.3 $23.4 $21.7 France $16.0 $16.2 $16.4 $15.3 $15.6 $15.8 Italy $13.5 $13.9 $14.3 $14.7 $13.0 $13.0 Spain $7.7 $7.3 $7.5 $7.8 $8.0 $8.2 Others $29.2 $29.9 $30.7 $32.0 $32.3 $32.7 2010 2011 2012 2013 2014 2015 • Advertising across major platforms will slow down in the European region amidst economic slowdown, however, online advertising is experiencing rapid growth • Total media ad spending in Western Europe will reach $126 Billion by 2015 from $114 billion in 2011 (CAGR~3%) Digital Media Spending Thrives in Western Europe, eMarketer Dec 20115
  • 6. Middle East-Africa One of the Fastest Growing Markets Globally Total Media Ad Spending, • Ad spending in the Middle East and Africa 2011-2016 (in Billions) remains the lowest in the world, and recent political instability has aggravated this situation in some areas $22.0 • Yet the Middle East and Africa represent one of $20.8 $18.3 $19.6 the fastest-growing markets globally. Advertisers $17.2 are eager to reach this expanding population as $16.0 rising income levels boost aspiration and consumption CAGR = 6.4% • As North America began to lose share in 2011, the emerging economies of the Middle East and Africa saw spending increase 10.7% 7.5% 6.9% 6.9% 6.0% 5.7% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 20136
  • 7. Latin America Ad Spending in the Region to Rise 10% in 2013 Total Media Ad Spending, • With its expanding population of increasingly affluent consumers, Latin America is one of the 2011-2016 (in Billions) world’s fastest-growing advertising markets • eMarketer estimates that ad spending in the $51.3 region will rise by 10% in 2013, and will continue $46.8 its double-digit growth through 2016 $42.7 $38.1 • National and regional advertisers will fuel much $34.7 of this activity, but multinational advertisers may $31.2 also devote more attention to Latin America if CAGR = 10.3% economic uncertainty in North America and Europe continues to affect business prospects 13.9% 11.0% 10.0% 12.0% 9.5% 9.8% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 20137
  • 8. TOTAL MEDIASPEND ACROSS MEDIA
  • 9. Western Europe Online Advertising to grow at 28% Share of Ad Spend by Total Ad Spending Across Mediums Medium (%) 2011 2012 & 2015 (in millions) Internet $35.0 Outdoor 20.3% 2012 2015 Cinema 6.3% $30.0 0 0.7% Radio $25.0 5.6% $20.0 $15.0 Newspapers 24.5% $10.0 TV -7.1% -8.1% 1.8% 1.6% 3.1% 2.8% 27.5% 30.3% $5.0 $- Newspapers Magazines TV Radio Cinema Outdoor Internet Magazines 12.4% • Television & Newspapers demand a major chunk of the Total Media Ad Spends in Western Europe with Internet in 3rd place • Internet Advertising Spends are expected to grow at 27.5%, which is the highest growth rate across all media Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 20129
  • 10. Asia-Pacific Online Advertising to grow at 46% Share of Ad Spend by Total Ad Spending Across Mediums Medium (%) 2011 2012 & 2015 (in millions) Outdoor Internet $80.0 Cinema 9.8% 16.3% 2012 2015 $70.0 0.4% Radio $60.0 4.2% $50.0 $40.0 Newspapers $30.0 22.5% $20.0 7.6% -5.2% 18.9% 12.2% 14.2% 10.1% 45.7% $10.0 TV Magazines 41.8% $- 5.1% Newspapers Magazines TV Radio Cinema Outdoor Internet • Television & Newspapers demand a major chunk of the Total Media Ad Spends in Asia-Pacific with Internet in 3rd place • Internet Advertising Spends are expected to grow at 45.7%, which is the highest growth rate across all media Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 201210
  • 11. Latin America Online Advertising to grow at 87% Share of Ad Spend by Total Ad Spending Across Mediums Medium (%) 2011 2012 & 2015 (in millions) Radio Cinema $35.0 6.1% 0.4% Outdoor 2012 2015 3.6% $30.0 Internet 4.0% $25.0 $20.0 Newspapers 17.1% $15.0 TV $10.0 62.3% 28.5% 21.3% 30.8% 21.6% 21.5% 30.7% 86.5% $5.0 Magazines 6.5% $- Newspapers Magazines TV Radio Cinema Outdoor Internet • Internet Advertising Spends are expected to grow at 86.5%, which is the highest growth rate across all media Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 201211
  • 12. Middle East-Africa Online Advertising to grow at 70% Share of Ad Spend by Total Ad Spending Across Mediums Medium (%) 2011 2012 & 2015 (in millions) $2.5 Cinema Radio 0.6% 2012 2015 3.7% Outdoor 5.0% Internet $2.0 2.5% $1.5 $1.0 TV Newspapers 50.2% 34.0% $0.5 - 0.9% - 5.1% 9.7% 2.1% - 4.3% 16.2% 69.9% $- Newspapers Magazines TV Radio Cinema Outdoor Internet Magazines 4.0% • Internet Advertising Spends are expected to grow at 69.9%, which is relatively higher than most of the other media • Total Online Ad Spends is very small compared to other media in Middle East-Africa Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 201212
  • 13. ONLINEADVERTISING
  • 14. Global Online Ad Spending Drives Growth Total Online Ad Spending & Growth, • Worldwide digital ad spending is projected 2011-2016 (in Billions) to nearly double between 2011 and 2016, rising from $8.3 billion to $163 billion • Globally, digital ad spending will represent nearly 20% of total media ad spending this year. It will $163.0 $149.2 grow to 26% of the total in 2016 $134.7 • Marketers in North America will lead the global $118.4 market in digital ad spending $102.8 $87.3 CAGR = 12.2% 17.7% 19.8% 21.7% 23.4% 24.8% 26.0% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201314
  • 15. Global Internet’s share of total ad spending worldwide will jump from 19.8% in 2012 to 25.9% in 2016 Online Ad Spend share of Total Media Online Advertising – Strongest Spend, 2012 & 2016 (in Billions) Performing Ad Channel Online Online $102.8 (19.8%) $163.0 (25.9%) More Measurable Online More Effective Advertising Other Other $416.0 (80.2%) $465.2 (74.1%) More Time Spent 2012 2016 Total = $518.8 Billion Total = $628.2 Billion Graph Source: eMarketer Estimates Source: eMarketer – Total Media Ad Spending Worldwide, 2010-2016 and Digital Ad Spending Worldwide, 2010-201615
  • 16. Global North America & Western Europe dominate Online Ad Spend but APAC will surpass Western Europe by 2016 Online Ad Spend Worldwide, By • North America and Western Europe dominate Region, 2010 & 2015 (in Billions) the world in online ad spending, but opportunity for growth remains significant, particularly in the burgeoning digital advertising markets of 2016 Indonesia, Brazil, Argentina, India and China, which will help drive spending worldwide • Asia-Pacific is catching up to North America and will surpass Western Europe by 2016, when Asia 2011 Pacific’s portion of online ad spending will be 48.6%—over 9 percentage points higher than 2011 2016 North America $34.4 $59.8 Western Europe’s Western Europe $25.0 $38.7 APAC $21.9 $48.6 Eastern Europe $2.9 $5.8 LATAM $2.5 $7.3 MEA $0.6 $2.9 Source: eMarketer – Emerging Markets in Asia-Pacific Propel Digital Ad Spend Growth in the Region, January 201316
  • 17. Asia-Pacific Increasing Online Population Drives Online Ad Spend Online Ad Spending & Growth, • Asia-Pacific will push past Western Europe to 2011-2016 (in Billions) become the region with the second highest digital ad expenditures in 2013, driven by rapid growth in Indonesia, India and China • The fastest growth in spending will come from $48.6 the emerging markets of Indonesia, India and $43.0 $37.7 Mexico—though that growth is coming from a $32.5 relatively small base of spending $27.3 $21.9 CAGR = 15.5% 16.2% 18.7% 20.6% 22.3% 23.9% 25.4% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201317
  • 18. Western Europe Online Ad Spending to Grow at a CAGR of 9% Online Ad Spending, • Even as Western Europe loses share to other regions, their total media spending per person 2011-2016 (in Billions) (along with North America’s) throughout eMarketer’s forecast period will remain higher than those of other regions $38.7 • Western Europe also boasts the second highest $36.3 $33.8 regional levels of digital ad spending per internet $30.7 $27.7 user, at $112 this year growing to $133 by 2016 $25.0 CAGR = 8.7% 20.9% 23.0% 24.9% 26.7% 28.1% 29.5% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201318
  • 19. Middle East-Africa Improving Infrastructure & Mobile Phones Aid Growth in Online Ad Spend Online Ad Spending & Growth, • As a percent of total ad spending, Middle East 2011-2016 (in Billions) and Africa’s digital spending is just 7% of all ad dollars going toward digital media • eMarketer expects this percentage to nearly double by 2016, but the region will still be far $2.9 behind the near-30% of ad spending devoted to digital in Western Europe and North America $2.3 $1.8 CAGR = 35.4% $1.3 $0.9 $0.6 3.7% 5.1% 7.0% 9.2% 11.1% 13.3% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201319
  • 20. Latin America Annual Value of Online Ads to Double by 2015 Online Ad Spending & Growth, • Latin America will post above-average double- 2011-2016 (in Billions) digit growth through 2016, while growth in North America and Western Europe will remain robust but more moderate $7.3 • Latin America is second only to the Middle East $6.3 and Africa as the fastest-growing digital ad $5.3 market in the world $4.2 • Between 2012 and 2016, digital ad spending will $3.4 climb from 9.7% to 14.1% of total media ad $2.5 CAGR = 21.2% expenditures in Latin America. The share of digital ad spending in Mexico will double within the next four years, rising from 11.9% to 22.1% 7.9% 9.7% 10.9% 12.4% 13.4% 14.1% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201320
  • 21. MOBILEADVERTISING
  • 22. Global North America & Western Europe Drive Mobile Advertising Mobile Ad Spending & Growth, • Worldwide mobile ad spending will reach $13.6 2011-2016 (in Billions) billion this year • Rapid mobile internet adoption combined with the continued development of mobile ad $36.9 networks and greater choice of mobile ad formats will significantly enhance how marketers $28.5 use mobile to engage consumers, especially in the more advanced advertising economies of $20.3 North America and Western Europe CAGR = 44.7% $13.6 • By 2016, investments in mobile advertising will $8.4 nearly triple to $36.9 billion $4.1 105.8 61.6% 49.5% 40.2% 29.6% % 74.6% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201322
  • 23. Global Mobile Ad Spending Rising Quickly Driven by Developments in Device & Mobile Web Adoption Mobile Ad Revenues Worldwide, By • eMarketer predicts that worldwide mobile Region, 2011 & 2016 (in Millions) advertising revenues will grow over nine-fold between 2011 and 2016, increasing from $4 billion to nearly $37 billion • Asia-Pacific previously had the largest mobile ad 2016 $36,873.3 Million expenditures worldwide, primarily due to advanced mobile advertising markets in Japan and South Korea • However, consumers are rapidly adopting 2011 $4,084.8 Million smartphones and tablets in the US, and marketers there are taking advantage of growing 2011 2016 mobile ad opportunities. In 2015, an expected Asia-Pacific $1,895.6 $6,191.6 North America $1,261.7 $21,391.7 rise in mobile ad investments in Western Europe Western Europe $845.0 $8,389.5 will push Asia-Pacific to third place Rest of the World $82.5 $900.623 Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 2013
  • 24. Asia-Pacific Japan, China & India Experience Significant Growth in Mobile Ad Spend Mobile Ad Spending & Growth, • Asia-Pacific previously had the largest mobile ad expenditures worldwide, primarily due to Japan 2011-2016 (in Billions) and South Korea’s advanced mobile advertising markets • However, with the US adoption of smartphones $6.2 and tablets, North America will surpass Asia- $5.3 Pacific this year by $3.9 billion $4.3 • Mobile ad expenditures in Asia-Pacific grew at a $3.4 slower pace due to the mobile ad economies $2.7 CAGR = 23.6% already in place in the region $1.9 • By 2016, mobile ad spending in Asia Pacific will total $6.2 billion, driven by a surge in growth in 45.6% 40.0% 28.6% 26.4% 23.2% 16.5% China, India and Indonesia. Japan’s share is expected to drop to 43.1% at that time due to 2011 2012 2013 2014 2015 2016 China’s dramatic expansion in the region Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201324
  • 25. Western Europe Leads the Way in Mobile Advertising Mobile Ad Spending & Growth, • Western Europe’s developed economies and high 2010-2015 (in Billions) smartphone usage will help push advertisers in the region to allocate larger portions of their budgets toward mobile through 2016 $8.4 • Across Western Europe, mobile’s share of digital ad spending will climb to 22% in 2016 from 6% in $6.4 2012 • By 2016, 28% of digital ad spending in the UK will $4.3 be devoted to mobile advertising, while more CAGR = 50.2% than 18% of total digital dollars in Denmark, $2.7 Germany, Italy and Norway will come from $1.6 mobile $0.8 92.0% 95.0% 66.0% 57.0% 48.0% 32.0% 2011 2012 2013 2014 2015 2016 Graph Source: eMarketer Estimates Source: eMarketer – Worldwide Ad Spending Forecast: Emerging Markets, Mobile Provide Opportunities For Growth, January 201325
  • 26. AD SPEND BY SECTOR
  • 27. Global Sector: Overall ChangeSource: Nielsen Global AdView Pulse Q3 2012
  • 28. Global Category Share of Spend YTD 2012Source: Nielsen Global AdView Pulse Q3 2012
  • 29. Internet – Global Trend by Sector Telecommunications Sector has grown the most followed by Media, Automotive & FMCG Sectors - % Change Year to Date, 2011 - 2012 7% 6% 6% 6% 4% 4% 5% 4% 2% 1% -11% 11% -4% Source: Nielsen Global Ad View Pulse, Q3 201229
  • 30. Top 20 Global Spenders YTD 2012Source: Nielsen Global AdView Pulse Q3 2012
  • 31. Top Categories by Region: Europe and Asia-Pacific Europe Asia-PacificSource: Nielsen Global AdView Pulse Q3 2012
  • 32. Top Categories by Region: Latam and MiddleEast/Africa Latin America Middle East/AfricaSource: Nielsen Global AdView Pulse Q3 2012
  • 33. Internet – Global Trend by Sector FMCG & Entertainment Sectors Spend Online Sectors - % Share of Spend, • FMCG, Entertainment and Industry and Services Sectors 2011 & 2012 spend the most on online 4.5 advertising. Automotive Clothing & Accessories • The Healthcare Sector has 1.5 7.5 10.9 9.9 11.2 5.7 Distribution Channels grown the most, sharing 9.9% 9.9 8.0 Durables of the total spend in 2012 from 11.7 13.7 3.3 Entertainment 1.5% in 2011. 4.7 5.2 Financial 10.4 FMCG 25.1 4.9 11 Healthcare 11.2 11.7 9.9 5.3 Industry & Services Media 2011 2012 Source: Nielsen Global Ad View Pulse, Q3 201233
  • 34. US Ad Spend
  • 35. Top US Product Categories & Digital Ad Revenues
  • 36. US: At $15.41 billion, Google’s ad revenue alone willaccount for 41.3% of total digital ad revenues in 2012
  • 37. Mobile Ad Spending TrendsMobile ad spending in North America to grow to $21.4 billion by 2016, a three-fold increase from 2013 Mobile Ad Spending Methodology Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms, and consumer mobile usage trends.
  • 38. US: Top 10 Advertisers in Internet Paid Search Grand Total (000)Top 10 Advertisers Ask.com $ 200,085.40 NOT ITEMIZED-INTERNET SITES NEC* $ 132,111.10 Amazon $ 91,684.40 AT&T $ 84,089.50 Microsoft $ 64,969.10 University of Phoenix $ 61,887.20 Verizon $ 41,225.10 State Farm $ 39,714.60 Home Depot $ 39,508.90 Target Discount Department Store $ 39,050.50Source: Kantar Media, Stradegy, YTD 2012 (Jan-Nov)* Not-Itemized advertising does not receive a specific Brand. Examples of thisinclude the following: Classified Ads and advertising in directories includingSchools & Camps, Financial, Kennels, Game Breeders, Where-To-Go, RealEstate, Restaurants, Hotels & Resorts, Postage Stamps & Coins, BusinessPropositions, etc.
  • 39. US: Top 10 Advertisers in Online Video US Online US Online Video Methodology Video Units Kantar Media began video ad collection inTop 10 Advertisers 2007 using a spider technology. The spider is AT&T 6,473 compatible with all digital pre, mid and post roll Charles Schwab 6,317 video formats and media players. Franklin Templeton 5,852 Verizon 5,146 A spider is directed to a specific site entry GorillaTrades.com 4,598 URL, and navigates its way from there through Kmart Discount Department Store 4,570 the site. As it visits web pages, the spider Goldman Sachs & Co. 3,298 performs several processes in real time: Fisher-Price 3,259 Paramount Pictures 3,160 1) Identifies video content originating from ad Dodge 3,107 servers 2) Digitizes the audio/visual content and creates signaturesSource: Kantar Media, Stradegy, YTD 2012 (Jan-Nov) 3) Matches known videos 4) Detects new videos
  • 40. Appendix
  • 41. European Online Display Spending Is Set To Rise December 2011 “Western European Online Display Advertising Forecast, 2011 To 2016”