Digital Ad Spending Set to Grow 25% in 2014 to $42 Billion; $120 Billion in 2020

By The Myers Report Archives
Cover image for  article: 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
 2013201420152016Average Change   2017-2020
% Change$% Change$% Change$% Change$% Change$
TOTAL - U.S. Only23.2%$33,74625.4%$42,32626.2%$53,42325.2%$66,91215.6%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 2013201420152016Average Change   2017-2020
% Change$% Change$% Change$% Change$% Change$
Newspaper AdvertisingDigital15.0%4,53617.0%5,30715.0%6,10314.0%6,9579.4%8,961
Local & National Spot Broadcast TVDigital10.0%93812.0%1,05012.0%1,17610.0%1,2947.0%1,506
Cable/Satellite Network TelevisionDigital15.0%1,12220.0%1,34730.0%1,75130.0%2,27622.5%3,947
Broadcast Network TVDigital20.0%1,57625.0%1,97025.0%2,46220.0%2,95511.0%3,946
Consumer Magazines AdvertisingDigital20.0%1,82625.0%2,28224.0%2,83017.0%3,31110.8%4,414
Terrestrial RadioDigital15.0%1,15620.0%1,38728.0%1,77528.0%2,27216.0%3,385
Out-of-Home/Place-BasedDigital(excl. Cinema & D-OOH-V]18.0%56020.0%67220.0%80620.0%96713.5%1,373
Business-to-Business MagazinesDigital15.0%62115.0%71415.0%8218.0%8871.0%936
Local/Regional Cable TVDigital8.0%15612.0%17420.0%20930.0%27211.5%367
Broadcast SyndicationDigital10.0%11110.0%12230.0%15820.0%19010.3%251
Cinema Advertising Digital15.0%115.0%115.0%110.0%27.5%2
Digital Place-Based Video Media (excl. cinema)13.8%95512.6%1,07611.8%1,20316.0%1,39511.1%1,783
Interactive, VOD & Addressable TV Advertising40.0%16740.0%23350.0%35080.0%63070.0%2,991
TOTAL - U.S. Only16.0%$13,72319.0%$16,33520.3%$19,64619.1%$23,40814.9%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 Companies2013201420152016Average Change   2017-2020
% Change$% Change$% Change$% Change$% Change$
Online Originated Display (Banner) Advertising6.0%7,4015.2%7,7865.6%8,2224.0%8,550-2.8%8,154
Social Marketing/WOM/Conversational Marketing40.0%4,62035.0%6,23735.0%8,42030.0%10,94622.5%19,477
Videogame Advertising/Virtual Currency18.0%1,60120.0%1,92117.0%2,24815.0%2,5858.3%3,236
Mobile & Apps Advertising (incl. Mobile Search)80.0%4,14660.0%6,63350.0%9,94945.0%14,42616.3%22,305
Internet Originated Radio 38.0%88338.0%1,21935.0%1,64625.0%2,05719.6%3,395
Online Originated Video Content Advertising 40.0%1,37260.0%2,19550.0%3,29350.0%4,93926.3%9,481
TOTAL - U.S. Only28.7%$20,02329.8%$25,99130.0%$33,77728.8%$43,50416.0%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.

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