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Worldwide Ad Spending Rate To Double

(7/10/2014)

Global ad spending will increase at more than double its previous growth rate for a total of $545.4 billion this year, according to new figures from eMarketer. The firm projects that paid worldwide advertising will increase 5.7% in 2014, compared to 2.6% a year ago. eMarketer attributes the jump, in part, to major global sporting events this year, including the FIFA World Cup and the Winter Olympics. Perhaps more important is the continued rapid growth of digital advertising. eMarketer estimates an increase of 16.7% in digital ad spending, totaling $140.15 billion and surpassing 25% of all media ad spending for the first time.

More specifically, eMarketer projects a rapid rise in mobile ad spending within the digital category. By 2018, the company predicts that nearly 68% of digital ad spending will go toward mobile in the U.S. Emerging markets such as China and India will not see such rapid gains, according to the research firm. “Even as some markets lag behind,” read the report, “heavy shifts to mobile in North America, Western Europe and parts of Asia-Pacific mean that by the end of eMarketer’s forecast period, more than half of all digital ad spending will go toward mobile Internet formats.”

The U.S. remains the leader in total media ad spending by country. It is estimated that the country will spend $180 billion in advertising this year, nearly one-third of the worldwide total. U.S. advertisers will spend nearly $565 on paid media per person in 2014, also the highest total by country. Norway, Australia and Canada are the next biggest spenders per person. India, then China, spends the least per person.



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