According to a study by eMarketer in 2012, for the first time in US history, the ad spendings on online advertisement will surpass the spendings on printed ads in magazines and newspapers. Since we had a slight discussion during the UnMe Jeans roleplaying part in class about different media types to use as promotional tool I thought it might be interesting to share some of this study’s findings with you all, my dear companions.
Expected for 2012 $39.5 billion will be spent on online ads, which is an 23,3% increase compared to the spendings in 2011 ($32 billion). This while spendings on printed ads are expected to be $33.8 billion, according to the great analysts over at eMarketer. A +23,3% change in online ad spenditure is quite a lot, especially because the fact that a year before (2010 vs. 2011) the same rate was calculated at +23%. Looking at the upcoming years eMarketer expects the online advertisement spendings to keep growing up to $62 billion in 2016.
Taking a look at the printed ad spendings, the study expects a 10,3% downfall by 2016 compared to 2011. While in 2011 these spendings were $36 billion in 2016 they’re expected to be $32.3 billion. Compared to the online growth, i think this decline isn’t that bad actually. Reading the article i expected much more. Here’s the graph..
Also, the study compares TV ad spending with online advertisement. However, TV spenditures aren’t expected to be affected by the significant increase in online ad spendings. While internet ad spending rises, TV will also.
Overall I think these expectations are quite realistic, although I expected the printed media ads to decline even more in the next couple of years. Since these forecasts are based on quite a short term, I am wondering how these expectations and graphs would look like if the time frame was about the next 20 years for example. Any ideas? Anyone?
xo,
Consumer Value Creation 
Thanks Ivan!! Very interesting post!! It is indeed amazing that we always talk about online channels but we see that expenditures are not so high as in “traditional” channels. Although my feeling is that this may be due to the high cost of the traditional media in comparison to the high flexibility and low cost of online channels in terms of advertisement opportunities. Also, in aggregate measures, we should also consider that the majority of targets are still mainly using traditional media…let’s not forget that!
For the future, i agree, traditional media will go down. What I’m really interested in is to see what would be the new “new channel”.
Well actually i’m wondering the same about the new “new channel”. I read some news and blog articles online about the new social media advertising trends, mainly for 2012, focussing on mobile advertisement. So maybe the new “new channel” will be marketing and advertising trough mobile phones and their applications..
Well, that’s my feeling too!! Especially given that mobile targeting can be ultimately localized and tracked geographically (see GPS). Imagine walking in the shopping street and receiving ads and offers from the shops you just passed in front off, also from online competitors and around lunch, offers from restaurants withing 200 meters from where you stand!! Hmmm…I think i would rather be the advertiser than the walker 🙂