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GroupM Predicts Digital Ad Spend Will Surpass $113 Billion in 2013

  |  March 28, 2013   |  Comments

GroupM believes that tablets and smartphones could be a major factor in the growing investment in digital ads.

GroupM projects that global digital ad spend will exceed $113 billion by year's end.

According to a recent report by the firm, digital advertising hit $99 billion last year. GroupM found that North America was the biggest investor in Internet advertising for 2012. The group believes that tablets and smartphones could be a major factor in the growing investment in digital ads.

GroupM predicts that digital ad spending will increase by over 14 percent from 2012 to 2013. The uptick would continue a trend of increased funding for digital ads over the past three years. According to GroupM's report, digital ad spending jumped over 16 percent from 2011 to 2012.

North America was reported to be the biggest spender for digital ads. GroupM found that North American advertisers spent over $38 billion on digital ads in 2012. Asia-Pacific was reported to be the second biggest spenders for digital ad spend with over $30 billion.

GroupM points to the growth of the mobile device market as a key reason for the growth in digital ad spending. According to the report, the ability to offer location awareness and touch interfaces on a mobile device is changing the way advertisers can offer ads.

"Tablets created an entirely new and original mechanism of media consumption in less than three years. Tablets combine the display quality of HDTV, the interactivity of the PC and the location awareness, touch interface and app ecosystem of the mobile phone," said chief digital officer at GroupM Global Rob Norman in the report.

"Media is being re-imagined for the tablet and is increasingly seen as the future home of what we have always described as the print industry, the decline of which is precipitous with ever-fewer exceptions."

The growth of tablets could also be responsible for the increase in media time spent online. GroupM reports that media time spent online has increased by 9 percent over the past seven years.

Image on home page via Shutterstock.

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ABOUT THE AUTHOR

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

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