ConnectAd, being a company that uses and consults on Google Grants and AdWords, we are excited to hear about the growth in online advertising spending and the attention it is getting from marketers as it surpasses a more traditional mode of advertising like print.

 

A MILESTONE IN ADVERTISING

In the U.S., for the first time ever, there are projections that spending on online ads will surpass print ads in magazines and newspapers. A study released recently by eMarketer expects online advertising to generate $39.5 billion in sales in 2012. This is a 23.3% increase from 2011. Print ad spend is expected to be $33.8 billion.

 

GROWTH OF ONLINE ADS

Online ad revenues are expected to continue growing over the next six years at a steady and consistent rate (refer to chart 1 below). By 2016, online ad revenues are projected to hit $62 billion.

 

ALTERNATIVES TO ONLINE ADS

The growth of online advertising comes at the expense of print ads. Print advertising budgets are expected to be slashed over the next six years (refer to chart 2 below). By 2016, total print spending will have decreased to $32.3 billion. This is approximately 10% less than what was spent in 2011.

Spending on TV advertising will be largely unaffected by the growth of online ads (refer to chart 3 below). Online ad spend will be catching up to TV advertising though. Overall, by 2016, TV advertising spend is expected to be $72 billion. This is a 18.6% increase from 2011.

 

THE INDUSTRY

These are healthy projections for the ad industry overall. Total U.S. ad spending is projected to be $169.5 billion. This is 6.7% of growth. By 2016, total ad spend is expected to be $200 billion and online advertising will make up one third of this industry.

 

Chart 1


Chart 2

 

Chart 3


Sources:

eMarketer Study: http://www.emarketer.com/Article.aspx?id=1008783&R=1008783

Mashable.com article: http://mashable.com/2012/01/19/online-advertising-surpasses-print-2012/

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