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Social Media Display Fuelling Ongoing Internet Ad Growth

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The internet will attract 21 percent more ad spend each year on its way to gobbling 22.1 percent of the total market by 2014, according to latest ZenithOptimedia projections.

Already, 25 percent of advertising money is online in Denmark, Norway, South Korea, Sweden and the UK. ZenithOptimedia reckons Canada, China, Norway, South Korea, Sweden and the UK will hit 30 percent by 2014.

ZenithOptimedia says the rush to advertise on social networks means display advertising is now catching up with paid search to be the internet’s dominant ad type. It expects display will rise from 36 percent of 2011 internet spend to 41 percent in 2014.

  • Television‘s share of advertising is expected to hold steady for now, but: “As the global economy improves we expect consumers to spend more time and money on activities outside the home, leaving less time for television.”
  • Print media ad outlay will shrink by one percent a year, but that does not include spending in print publishers’ websites and tablet apps. “The prospects for newspaper and magazine publishers are therefore not quite as bleak as our headline figures would make them appear,” ZenithOptimedia cautions.

ZenithOptimedia has marginally increased its forecast to an expected 4.8 percent growth in 2012 global ad spend – based on an up-turn in marketing investment and “a reduced risk of disastrous collapse in the eurozone, even though its short-term economic performance has deteriorated”.

And 60 percent of all the forecast 2011-2014 growth is expected to come from emerging markets.

4 Responses to “Social Media Display Fuelling Ongoing Internet Ad Growth”

  1. Ah, but here’s the problem with advertising, of any type, on social media networks:  it often stokes negative word of mouth.  To wit, imagine an ad appearing to an influential facebook user (i.e., one with a large network of friends) for a company with which he/she has had a bad experience (e.g., he received poor customer service or his uncle was just laid off by them).  Advertising to such a person has just reminded him of how he dislikes that company and it has done so in the very place where it is easiest for him to instantly share with his large and trusting circle of friends his experience with that company and why they should not do business with them.  Oops! 

    IMHO, then, social media advertising may be great for small brands, but for large and already well-known advertisers, it’s a veritable reputational mine field.  There better off sticking with contextual websites or even offline media.

  2. Interesting stats, though I hope the audience targeting tools get stronger at the same time.  From a usability standpoint, typical ad spaces on website pages get tuned out just like off line ads get tuned out when not applicable to the viewers.