Nov. 20 (Bloomberg) -- Internet advertising spending is projected to increase 15 percent in 2013, while total ad growth will be weaker on concerns about Europe, the U.S. budget and the lack of major media events next year.
Global Web ad spending is expected to jump to $101.8 billion next year from $88.4 billion, according to Zenith Optimedia Group Ltd. Total spending on ads may grow 4.9 percent to $530 billion, trimmed from the 6 percent increase estimated earlier this year, according to data compiled by Bloomberg Industries released today.
Digital and emerging markets will drive growth, Paul Sweeney, a Bloomberg Industries analyst, said in a report. While the London Olympics and the U.S. presidential election helped boost spending on advertising in 2012, there will be no comparable high-profile sporting or political events in 2013.
“A deepening of the European crisis has led to heightened caution in developed markets, as agencies reported drastic budget cuts in the third quarter,” Sweeney said.
Mobile ads, which still make up a smaller part of total spending, may grow 51 percent to $9.7 billion, according to New York-based EMarketer Inc.
Martin Sorrell, chief executive officer at the world’s largest advertising company, WPP Plc, has voiced concerns about the outlook as pressure mounts form the coming “fiscal cliff” -- $607 billion in spending cuts and tax increases to automatically take effect in January unless lawmakers act.
WPP cut full-year sales targets for 2012 following third-quarter results last month. Revenue growth for the year will be 2.5 percent to 3 percent, down from an earlier forecast of about 3.5 percent.
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