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Global Ad Spending to Double Pace in 2014, EMarketer Says

Global advertising spending will increase 5.7 percent this year, more than double the pace of 2013, driven by higher expenditure on digital and mobile marketing, according to a survey by EMarketer Inc.

Total media spending may top $545 billion this year, compared with $516.2 billion last year, which was a gain of 2.6 percent on 2012, the research firm said today in a report. Digital advertising is forecast to increase 16.7 percent to $140.2 billion and for the first time will account for more than 25 percent of total ad spending.

The increase is the largest growth projection for global advertising spending since EMarketer began tracking the market in 2008. Within digital ad spending, mobile marketing will increase 85 percent to $32.7 billion this year, almost a quarter of all online media expenditure, EMarketer said.

“The learning curve for mobile is all starting to get figured out now,” said Dan Marcec, director of public relations for EMarketer. “Publishers like Facebook (FB) and Google have started to understand consumer behavior on these devices.”

Internet companies such as Facebook Inc., Google Inc. (GOOG) and Twitter Inc. are battling to generate more revenue from mobile ads as consumers increasingly use their smartphones and tablets for shopping, playing video games and communicating on social networks. By 2018, EMarketer forecasts mobile ad spending will account for more than 50 percent of all online media, which in turn will account for about one-third of total ad spending.

Soccer Boost

While mobile advertising will be a driver this year, soccer’s World Cup in Brazil and the Winter Olympics in Sochi have also given marketers a boost, the researcher said in its report today.

By country, the U.S. is estimated to be the leader in ad spending with more than $180 billion projected this year and an estimated $565 per person. China, the world’s most populous country, is forecast to be the second-largest ad spender, even though marketers may splash out just $37 per person.

While mobile ad expenditure as a percentage of digital media spending will approach 70 percent in the U.S. in 2018, in China it will be about 30 percent.

“In emerging markets like China, Indonesia and India, mobile advertising dollars will remain a comparatively small portion of digital ad spending throughout our forecast,” the researcher said. Many consumers still use feature phones and less-advanced smartphones and “there is a significant learning curve for mobile ad development,” it said.

To contact the reporter on this story: Caitlin McCabe in New York at cmccabe11@bloomberg.net

To contact the editors responsible for this story: Sarah Rabil at srabil@bloomberg.net Ben Livesey, Stephen West

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