Read original report on: magnaglobal.com
Our sibling agency MAGNA GLOBAL released their annual Global Ad Forecast for 2015 earlier today. Here are the top five statistical highlights:
Globally, media owner advertising revenues are forecast to grow by +4.8% in 2015 to reach $536 billion, surpassing the half-trillion milestone. MAGNA forecast global digital revenues to reach 30% market share globally in 2015 (+15.1% to $163 billion).
Domestically, media owners advertising revenues grew by +4.0% this year to $165 billion in the US – an acceleration compared to 2013 (+2.4%) but below previous expectations.
Digital media grew strongly again this year (+17.2% to $142 billion) driven by mobile campaigns (+72%) and social formats (+64%). Based on long-term forecasts, digital media will catch up with television in 2019, when both account for 38% of global advertising revenues.
Digital media is already the #1 media category in 14 of the 73 markets analyzed by MAGNA GLOBAL in this update, including the UK (highest share in the world: 47%), Australia, Canada, Germany, China, Sweden and the Netherlands. In the US, digital will outgrow television revenues by 2017.
Most other media categories suffered from the competition of television and digital in 2014. Newspaper ad sales decreased by an average -4.3% while magazines ad revenues shrank by -7.3%. Radio was flat (+0.1%) and out-of-home media grew by +3.4%.
BitTorrent Inc., the company behind the peer-to-peer file-sharing protocol that most torrent sites currently deploy for privacy, is courting advertisers. According to their pitch deck, the company is trying to convince advertisers that their transfer protocol is an ideal marketing platform for publishers and brands alike. Shredding its association with piracy, the company urges advertisers to reconsider it as a “software company that lets users download software, bundles of content and sync content across devices”. Leveraging its high brand awareness and its alleged “counter-cultural position”, the company might just get some brands on board.
This map from MAGNA represents the global digital media market in two dimensions. The size of each country is proportional to its domestic digital ad revenues (including search, display, video, and social) in 2013. And the color code represents the maturity of the market (i.e. the share of total advertising spend going into digital media) around the global average of 24%. This visually informative infographic shows, for instance, that UK is number one in terms of maturity, with digital media controlling 43% of the advertizing market (USD 9.5bn), followed by Netherlands and China (37% and 35%, respectively). It also shows that despite taking up 36% of global spending in digital ad., the US is only slightly above global average with a maturity level of 27%.
Note: the infographic featured here is an updated version of a similar one the Lab published over a month ago.
In a predicable yet still interesting move, Facebook has started testing a new feature on its news feed ads and page posts: a native “Buy” button designed for enabling one-click purchase without leaving the site. Diving deeper into e-commerce integration, the social giant is working with some select small business partners in the US to try out this new direct purchase function, aiming for further roll-out if the trial proves successful. With Facebook taking the lead, we expect to see more and more digital platforms joining in the trend of build-in e-commerce infrastructure.
Amazon is bringing its Amazon Mobile Ads API to apps on iOS, allowing app developers to place ads from the Amazon Mobile Ad Network in apps across platforms. Previously only available on Android and Fire OS devices, the ad platform now can help better monetize iOS apps and gain access to highly relevant ads Amazon and its subsidiaries. If this works as well as Amazon’s “recommendation list”, it could potentially work wonders on iOS.
30 members of the Association of National Advertisers (ANA) have joined forces to tackle the prevalence of fraud in digital advertising. The brands will be teaming up with fraud-detection company White Ops to conduct a month-long research on this subject, hoping to produce some actionable insights for combating the digital frauds. The effort is definitely timely and noble, but it seems doubtful that such a guideline could remain relevant and applicable, given the speed at which our technology, and correspondingly, the market are evolving. As we reported, a brand’s digital presence is now an easy target for cyber attacks, and it is crucial for the brands to develop a stronger sense of awareness and supervision on this issue.