According to
Kantar Media $144 billion was spent on advertising in the U.S. in 2011. Television received the largest portion of this (47%) divided between Broadcast ($38.5 billion) and local and national Cable TV at $30 billion.
Digital Advertising Growth
The big growth area was in digital advertising with the Internet and Mobile reaching a combined $31.7 billion, a 22% increase over 2010 which was also a record-breaker at $26 billion. Online ad spending is expected to be approaching the total spend of Broadcast and Cable TV combined by 2016. The Mobile segment for 2011 was only $1.6 billion of the Internet total, but growing at a rate of 149% compared to the $0.6 billion generated in 2010.
The other top segments include:
| |
Billions |
| Newspapers |
$20.7 |
| Magazines (consumer and trade) |
$18.0 |
| Radio |
$15.2 |
| Out of Home |
$6.5 |
| Video Games |
$1.0 |
| Cinema |
$0.7 |
The spend for digital advertising already exceeds the revenue generated by both Newspapers and Magazines in 2011, and is likely to be greater than both combined by the end of 2012 according to
eMarketer. The trends for print continue mostly down. eMarketer forecasts that magazine revenue will be flat through 2016. Newspaper revenue will see a continued steady decline and by 2017 be at $17 billion.
The $20.7 billion in 2011 is the lowest annual amount spent on newspaper advertising since $19.5 billion in 1951, exactly 60 years ago. Even when online ads are added to the print revenue of newspapers the total will still be $22.6 billion, just slightly more than the $22.5 billion spent on print advertising in 1954.
According to the
Publishers Information Bureau (PIB) magazine ad pages dropped 3.1% from 169,552 in 2010 to 164,225 in 2011.
Mobile Phone Shopping
Given how gadget-crazed consumers seem to be at the moment, advertisers are expected to accelerate their nontraditional media spend.
MagnaGlobal says spending on Internet media (including national and local) will grow by 12.2% to $35.6 billion this year.
eMarketer has forecasted that online ad spending will grow to $39.5 billion in 2012.
In a recent survey by the IAB the majority of respondents (70%) agreed that mobile advertising is a welcome personal invitation from brands, rather than an “invasion.” In addition, half (51%) of those same respondents said they want the mobile ads they click on to allow them to browse the brand or company's broader product offerings.
The survey found that about 47 percent of mobile phone shopping actions take place in the home, while 29 percent happen on-the-go, and 10 percent occur at work. Searching for products seems to be the main focus while consumers are home (57%), while searching for a store location is the primary usage while out and about (49%). Additionally, 49% of home mobile phone shopping actions take place while the user is watching television.
- Digital video, a component of display-related advertising, saw a significant uptick of 29 percent year-over-year, bringing in $1.8 billion in revenue in 2011 compared to $1.4 billion in 2010.
- Search revenues in 2011 totaled $14.8 billion, up almost 27 percent from $11.7 billion in 2010.
- Display-related advertising revenues in 2011 totaled $11.1 billion or 35 percent of 2011 revenues, up 15 percent from $9.6 billion in 2010.
- Retail advertisers continue to represent the largest category of internet ad spending, accounting for 22 percent in 2011, or $7.1 billion, up from 21 percent ($5.5 billion) reported in 2010.