Media Press Release of the Week -3-28-13

GLOBAL INTERNET AD SPEND HIT 99 BILLION IN 2012 ALMOST 20 PERCENT OF TOTAL INVESTMENTNew GroupM Study Predicts This Yearamp8217sDigital Spend Will Exceed 113 BillionInternet advertising hit 99 billion in 2012 representing a 162 percent increase over the previous year and accounting for 195 percent of all global measured advertising expenditures according to a new report from GroupMNorth America led the world in overall digital advertising investment with an estimated 383 billion AsiaPacific came in second with 306 billion followed by Western Europe with 241 billion according to the study entitled This Year Next Year Interaction 2013 The study is part of GroupM39s media and marketing forecasting series drawn from data supplied by parent company WPP39s worldwide resources in advertising public relations market research and specialist communications It was released today by Londonbased GroupM Futures Director Adam Smith and New Yorkbased Global Chief Digital Officer Rob NormanThe study also predicted that in 2013 digital advertising spending will reach 1135 billion globally 146 percent more than 2012 The figure represents more than 21 percent of all measured advertising investment In the 2013 forecast North America once again ranks first with an estimated 428 billion in digital ad spend AsiaPacific follows with 368 billion followed by Western Europe with 266 billionIn the US digital advertising spending reached 354 billion in 2012 a 23 percent share of the overall domestic market and a 10 percent increase over the previous year according to the study This year those figures are expected to reach 397 billion for a 254 percent share and a 12 percent increase over 2011The report also includes commentary on the current state of various digital marketing developments and offers insightful observations on the evolution of digital communications and the inherent implications for marketersamp8220The internet no longer belongs to the old world and eastern Asia nor does it depend upon evolution of infrastructure conceived a generation or more ago but instead reaches every continent and economically active individualamp8221 Norman wrote in his introduction to the annual report amp8220Ken Olsen founder and CEO of Digital Equipment said in 1977 amp8216There is no reason for any individual to have a computer in his homeamp8217 It turns out that he may inadvertently have been right Why have a computer in your home when you can have computing anywhere you likeamp8221Normanamp8217s essay also addresses the issue of the rise and impact of online video and states amp8220Tablets created an entirely new and original mechanism of media consumption in less than three years Tablets combine the display quality of HDTV the interactivity of the PC and the location awareness touch interface and app ecosystem of the mobile phone Media is being reimagined for the tablet and is increasingly seen as the future home of what we have always described as the print industry the decline of which is precipitous with everfewer exceptionsamp8221In addition to spending forecasts the comprehensive 28country report also details ad investment in paid search and Internet display as well as data on broadband penetration media time spent online and ecommerce per user dataAdditional key findings in the survey include the followingamp183 The average percentage of consumersamp8217 amp8220media timeamp8221 spent online has risen from 21 percent in 2007 to a predicted 30 percent in 2013amp183 Investment in print media continues to lose share while digital media investment continues to gain Print accounts for 14 percent of the media day but still attracts about 24 of investment down from 48 percent when internet advertising investment measurement began in 1995 The decline of print advertising reflects falling circulations in the old world but its share of the world39s media day has been surprisingly stable and even increased in 2011 thanks to China shares of the media day 26 countries amp160amp160amp160amp1602007200820092010201120122013fOnline21222526272930TV42424241393838Print15161514161414Radio22191918181818Total100100100100100100100amp183 Ecommerce per user will stand at 859 in 2013 a 64 percent increase since 2007 International ecommerce total adds up to 917 billion for 2012 with a runrate of growth of 18 percent to a predicted 11 billion in 2013 This volume of ecommerce generates an estimated 40 percent of online paidmedia ad investment todayAnnual ecommerce spend per user USDamp160amp160amp160amp160amp1602007200820092010201120122013fCAGR 20072013fAverage5225385555906537668599Median43348661268766670676510Copies of the full report are available to the media upon requestamp160amp160ABOUT GROUPMGroupM is the leading global media investment management operation It serves as the parent company to WPP media agencies including Maxus MEC MediaCom and Mindshare Our primary purpose is to maximize the performance of WPPamp8217s media communications agencies on behalf of our clients our shareholders and our people by operating as a parent and collaborator in performanceenhancing activities such as trading content creation sports digital finance proprietary tool development and other businesscritical capabilities The agencies that comprise GroupM are all global operations in their own right with leading market positions The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading innovation and new communication services to bring competitive advantage to our clients and our companies

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Media Press Release of the Week -3-28-13

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