Digital Media Ad Spending Forecast To Grow 15.7% In 2015

Digital Media Ad Spending Forecast To Grow 15.7% In 2015

In the U.S., the tactic of buying digital display ads using automated technology — commonly known as “programmatic” — is forecast to account for 45 percent of the 2015 digital display ad market, according to a report by media agency Carat, AdAge reports.

What’s happening in the U.S. largely reflects the rest of the globe, Carat reports. A media planning and buying specialist in digital and non-traditional media, Carat is based in the London.

Digital media are fueling the growth in advertising budgets, forecast to grow 15.7 percent in 2015 while traditional media — even TV — see sluggish growth or declines, Carat reports.

The Carat report — which includes data from 59 markets in Africa, the Americas, Asia, Europe, and the Middle East — shows how media consumption is changing through the lens of marketing budgets.

Digital media — especially mobile and video — command larger investments; TV remains huge but not quite as large as it once was, according to the report; and the erosion of print is continuing to the point where billboards and other out-of-home ads will bypass the amount advertisers spend on magazines worldwide.

The year-over-year increase in advertising budgets comes despite a relative lack of tent-pole media events such as last year’s FIFA World Cup, Winter Olympics, and U.S. mid-term elections that helped boost advertising expenditure, AdAge reports.

Spending on TV advertising will be about 42 percent of ad spending in 2015, according to Carat. Digital media will make up 24 percent of global ad spending, and newspapers will be the third largest marketing expenditure at 12.8 percent.

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Driving the surge in digital is a 50 percent increase in global mobile-ad spending and a 22 percent boost in global online video budgets.

The difficulty in proving return of investment for more traditional businesses is holding back mobile investment, according to the report. “Much of the early investment in mobile advertising has been amongst pure-play, app economy brands and business for whom there is an easily demonstrable ROI for investing in mobile,” the report said.