Digital Ad Spending Set to Grow 25% in 2014 to $42 Billion; $120 Billion in 2020
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Total digital advertising will increase 25.4% to $42.3 billion in 2014 (excluding online search), according to a new economic forecast and report issued by MyersBizNet. Of the total digital ad spending, nearly 40% will be invested with legacy media companies. Scroll down for media-specific and category-by-category spending data. The MyersBizNet forecast projects total industry-wide digital revenues will grow an average 20% annually through 2020, resulting in total digital ad spending of nearly $120 billion in 2020. (Scroll down for commentary and overview.)
Total Digital Advertising Spending 2013-2020
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| MyersBizNet Media Business Report 2014 | ||||||||||
| Above-the-Line Advertising Spending | ||||||||||
| Official Marketing / Advertising Spending Data 2013 - 2020 | ||||||||||
| UPDATED 01-06-14 Data reported in 000,000 | ||||||||||
| 2013 | 2014 | 2015 | 2016 | Average Change 2017-2020 | ||||||
| % Change | $ | % Change | $ | % Change | $ | % Change | $ | % Change | $ | |
| TOTAL - U.S. Only | 23.2% | $33,746 | 25.4% | $42,326 | 26.2% | $53,423 | 25.2% | $66,912 | 15.6% | 99,911 |
| Source: MyersBizNet Media Business Report© copyright 2014 | ||||||||||
Legacy Media Digital Advertising Spending 2013-2020
(Digital spending invested with legacy media companies)
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| MyersBizNet Media Business Report 2014 | ||||||||||
| LEGACY MEDIA | ||||||||||
| Above-the-Line Digital Advertising Spending | ||||||||||
| Official Marketing / Advertising Spending Data 2013 - 2020 | ||||||||||
| UPDATED 01-06-14 Data reported in 000,000 | ||||||||||
| "Legacy" refers to revenues generated for traditional media companies | 2013 | 2014 | 2015 | 2016 | Average Change 2017-2020 | |||||
| % Change | $ | % Change | $ | % Change | $ | % Change | $ | % Change | $ | |
| Newspaper AdvertisingDigital | 15.0% | 4,536 | 17.0% | 5,307 | 15.0% | 6,103 | 14.0% | 6,957 | 9.4% | 8,961 |
| Local & National Spot Broadcast TVDigital | 10.0% | 938 | 12.0% | 1,050 | 12.0% | 1,176 | 10.0% | 1,294 | 7.0% | 1,506 |
| Cable/Satellite Network TelevisionDigital | 15.0% | 1,122 | 20.0% | 1,347 | 30.0% | 1,751 | 30.0% | 2,276 | 22.5% | 3,947 |
| Broadcast Network TVDigital | 20.0% | 1,576 | 25.0% | 1,970 | 25.0% | 2,462 | 20.0% | 2,955 | 11.0% | 3,946 |
| Consumer Magazines AdvertisingDigital | 20.0% | 1,826 | 25.0% | 2,282 | 24.0% | 2,830 | 17.0% | 3,311 | 10.8% | 4,414 |
| Terrestrial RadioDigital | 15.0% | 1,156 | 20.0% | 1,387 | 28.0% | 1,775 | 28.0% | 2,272 | 16.0% | 3,385 |
| Out-of-Home/Place-BasedDigital(excl. Cinema & D-OOH-V] | 18.0% | 560 | 20.0% | 672 | 20.0% | 806 | 20.0% | 967 | 13.5% | 1,373 |
| Business-to-Business MagazinesDigital | 15.0% | 621 | 15.0% | 714 | 15.0% | 821 | 8.0% | 887 | 1.0% | 936 |
| Local/Regional Cable TVDigital | 8.0% | 156 | 12.0% | 174 | 20.0% | 209 | 30.0% | 272 | 11.5% | 367 |
| Broadcast SyndicationDigital | 10.0% | 111 | 10.0% | 122 | 30.0% | 158 | 20.0% | 190 | 10.3% | 251 |
| Cinema Advertising Digital | 15.0% | 1 | 15.0% | 1 | 15.0% | 1 | 10.0% | 2 | 7.5% | 2 |
| Digital Place-Based Video Media (excl. cinema) | 13.8% | 955 | 12.6% | 1,076 | 11.8% | 1,203 | 16.0% | 1,395 | 11.1% | 1,783 |
| Interactive, VOD & Addressable TV Advertising | 40.0% | 167 | 40.0% | 233 | 50.0% | 350 | 80.0% | 630 | 70.0% | 2,991 |
| TOTAL - U.S. Only | 16.0% | $13,723 | 19.0% | $16,335 | 20.3% | $19,646 | 19.1% | $23,408 | 14.9% | 33,864 |
| Source: MyersBizNet Media Business Report© copyright 2014 | ||||||||||
Digital Native Media Spending 2013-2020
(Digital native refers to media categories originated via Internet and mobile distribution, excluding revenues generated by legacy media companies i.e. newspapers, TV networks, radio, OOH)
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| MyersBizNet Media Business Report 2014 | ||||||||||
| DIGITAL NATIVE MEDIA CATEGORIES | ||||||||||
| Above-the-Line Advertising Spending | ||||||||||
| Official Marketing / Advertising Spending Data 2013 - 2020 | ||||||||||
| UPDATED 01-06-14 Data reported in 000,000 | ||||||||||
| Digital Native refers to media categories originated via Internet and Mobile Distribution, excluding digital revenues generated by Legacy Media Companies | 2013 | 2014 | 2015 | 2016 | Average Change 2017-2020 | |||||
| % Change | $ | % Change | $ | % Change | $ | % Change | $ | % Change | $ | |
| Online Originated Display (Banner) Advertising | 6.0% | 7,401 | 5.2% | 7,786 | 5.6% | 8,222 | 4.0% | 8,550 | -2.8% | 8,154 |
| Social Marketing/WOM/Conversational Marketing | 40.0% | 4,620 | 35.0% | 6,237 | 35.0% | 8,420 | 30.0% | 10,946 | 22.5% | 19,477 |
| Videogame Advertising/Virtual Currency | 18.0% | 1,601 | 20.0% | 1,921 | 17.0% | 2,248 | 15.0% | 2,585 | 8.3% | 3,236 |
| Mobile & Apps Advertising (incl. Mobile Search) | 80.0% | 4,146 | 60.0% | 6,633 | 50.0% | 9,949 | 45.0% | 14,426 | 16.3% | 22,305 |
| Internet Originated Radio | 38.0% | 883 | 38.0% | 1,219 | 35.0% | 1,646 | 25.0% | 2,057 | 19.6% | 3,395 |
| Online Originated Video Content Advertising | 40.0% | 1,372 | 60.0% | 2,195 | 50.0% | 3,293 | 50.0% | 4,939 | 26.3% | 9,481 |
| TOTAL - U.S. Only | 28.7% | $20,023 | 29.8% | $25,991 | 30.0% | $33,777 | 28.8% | $43,504 | 16.0% | 66,047 |
| Source: MyersBizNet Media Business Report© copyright 2014 | ||||||||||
| MyersBizNet, Inc, Jack Myers and employees accept no responsibility for any action(s) taken as a result of this forecast. | ||||||||||
| 2013-2020 are estimates. | ||||||||||
| This forecast includes Olympics, NFL, NCAA and other sports programming | ||||||||||
COMMENTARY AND OVERVIEW
Although the newspaper industry is roundly criticized for its failure to move quickly into digital businesses, newspapers will generate more than $5 billion in digital revenues, more than twice the digital revenues of any other legacy medium. MyersBizNet forecasts that consumer magazines, which have accelerated their digital businesses, will generate 25% growth in online and mobile revenues, a total of $2.3 billion. Broadcast networks will generate almost $2 billion and cable networks $1.35 billion, while radio stations, led by Clear Channel, will grow their digital revenues by 20% to $1.4 billion.
Of that total, MyersBizNet forecasts $41 billion will be invested with legacy media companies and $78.6 billion will be spent in digital native media, including mobile, display, online originated video and social marketing.
Online Search marketing, which is published separately by MyersBizNet, will represent an additional $22.4 billion in 2014 digital spending, with projected growth of 10%. Mobile search is included in the mobile advertising total.
The fastest growing category of ad spending in 2014 is forecast by MyersBizNet to be mobile and online originated video content advertising, both projected to increase 60%,
MyersBizNet is the only industry forecaster that provides detailed forecasts and data for both legacy and digital spending by medium, and also provides data on below-the-line marketing and promotion investments. Hispanic media data is not included and will be issued separately. Full data and forecasts from 2009 to 2020 are available to MyersBizNet Premium and Platinum members. Reference sources are available by request to MyersBizNet members. Visit www.myersbiznet.com/ for MyersBizNet full detailed data and forecasts.
SOURCE: MyersBizNet, Inc, Jack Myers and employees accept no responsibility for any action(s) taken as a result of this forecast.
2013-2020 are estimates.
This forecast includes Olympics, NFL, NCAA and other sports programming.
Jack Myers
Media Ecologist, Founder: MediaVillage and Advancing Diversity Hall of Honors Jack Myers is a media ecologist and founder of MediaVillage, the media and advertising community’s leading resource for market intelligence, education, business connection…
