David Seidler
Jul 13, 2011

Digital's role to skyrocket globally: GroupM

GroupM has forecast an increasingly key role for digital advertising over the next two years.

Digital's role to skyrocket globally: GroupM

According to the holding company's biannual report, This Year, Next Year, digital advertising will account for 17 per cent of global advertising spend in 2011, a full percentage point above the group’s forecast just six months ago. The conclusions were based on data supplied by parent company WPP's agency network.

As the sector grows at an estimated 15 to 16 per cent annually, the GroupM report estimated that digital advertising investment would top US$100 billion worldwide in 2012. Adam Smith, futures director for GroupM, suggested that the movement of advertising dollars to digital outlets largely reflected the commercial utility of behavioural targeting and web video. Even where digital advertising spending accounts for over 20 percent of measured advertising in the regions where it is most developed, there is still room for it to grow further, he said.

The report painted a bleaker picture on the more general advertising front, however. GroupM revised down its 2011 ad growth forecast a full percentage point from a 5.8 to a 4.8 per cent increase on 2010 numbers. It blamed unrest in the Middle East and the earthquake and tsunami in Japan for the downgrade.

But things could be looking up next year. The report predicts a 6.8 per cent increase in global ad spending in 2012, driven largely by big anticipated spends on the London Olympic Games and the US election season.

This article first appeared on Campaign Asia

Campaign India

Related Articles

Just Published

3 hours ago

Dentsu appoints new president and chief strategy ...

Narayan Devanathan who rejoined Dentsu in June 2023 after he vacated his role as the Group's chief client officer in August 2022, now takes on a new regional remit.

3 hours ago

Pepsi unveils new logo and identity; colours 120 ...

The bold logo shift after 14 years resonates with the “ripple, pop, and fizz” effect. To celebrate, Pepsi has activated over 120 CGI moments across the globe in a coordinated first

4 hours ago

Moves and wins roundup: Week of 4 March

Read all the latest news from the marcomms world including updates from Zade, Angel One and more here.

5 hours ago

Accenture acquires martech consultancy The Lumery

The Lumery's 80-strong team across Australia and Bengaluru, India, will join Accenture Song’s marketing practice—delivering services including personalisation, CRM and loyalty, testing and automation