Skip to main content

U.S. Online Ad Spending to Reach $62 billion by 2016


2011 will be remembered as yet another dismal year for most of the technology trade publishing sector. Connected Planet, a U.S.-based telecom industry magazine with an accomplished track-record which spanned across a century, ceased operations.

It was one more example of where advertising revenue could no longer sustain a legacy print publishing business -- even after it's been rebooted as a lower-cost online-only publication.

This phenomenon, the prospect of prolonged low profitability, will surely claim more publication closures and traditional media company victims in 2012, but the broader market outlook is apparently not as bleak -- from a top-line advertising revenue perspective.

Overall U.S. online advertising spending will growth above 20 percent again this year -- to reach nearly $40 billion, according to the latest market study by eMarketer.

Double-digit growth is forecast through 2014, when U.S. online ad spending will reach $52.8 billion. In 2016, eMarketer optimistically expects advertisers to spend an amazing $62 billion online.

"Advertiser comfort level with integrated marketing is greater than ever, and this is helping more advertisers -- and more large brands -- put a greater share of dollars online," said David Hallerman, eMarketer principal analyst.

Online has moved ahead of some traditional media -- especially print newspapers and magazines. In fact, U.S. online ad spending will exceed the total spent on print magazines and newspapers for the first time in 2012, reaching $39.5 billion (online) vs. $33.8 billion (print).

That said, spending on TV ads appears somewhat unaffected by the growth of online. As internet ad spending rises, so will TV -- although more slowly, and from a larger base.

eMarketer estimates TV advertising will attain $72 billion in U.S. ad spend by 2016 -- that's $10 billion more than will go online.

Overall, total media ad spending is forecast to grow by 6.7 percent this year to $169.5 billion, boosted by national election campaigns and gains in mobile spending. Growth will be in the 3 to 4 percent range for the remainder of the forecast period, with spending reaching nearly $200 billion by 2016.

eMarketer believes that online will be a driver of growth and will represent nearly a third of total media ad spending that year. Traditional media ad spending -- aside from a few dim bright spots, such as TV -- will stagnate during the forecast period.

Popular posts from this blog

Worldwide Contactless Payments will Exceed $1 Trillion

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente