Online Ad Spend to Surpass Print in 2012

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This is big. A new forecast from eMarketer states online spend will pass print for first time in 2012. US online advertising spending, which grew 23% to $32.03 billion in 2011, is expected to grow an additional 23.3% to $39.5 billion this year pushing it ahead of total spending on print newspapers and magazines, according to the report. Print advertising spending is expected to fall to $33.8 billion in 2012 from $36 billion in 2011.

eMarketer’s previous US online advertising forecast from July 2011 forecasted 20.2% growth to $31.1 billion in 2011. Stronger than expected results from major industry players and the IAB/PwC benchmark through the first three quarters of 2011 contributed to the upward revision.

Despite concerns about the troubled economy among agencies and marketers, total ad spending in the US is expected to rebound in 2012 after rising 3.4% to $158.9 billion in 2011. eMarketer predicts US total media ad spend will grow an estimated 6.7% to $169.48 in 2012, boosted, they say, by the national elections and summer Olympics in London.

Spending on TV advertising grew 2.8% in 2011 to $60.7 billion. This year, eMarketer says TV ad spending will grow an estimated 6.8% to $64.8 billion.

eMarketer also estimated US digital newspaper ad revenues grew 8.3% to $3.3 billion in 2011. Print advertising revenues at newspapers fell 9.3% to $20.7 billion in 2011. At magazines, US print ad revenues are expected to rise 0.5% to $15.34 billion in 2012, up from $15.3 billion last year. US digital advertising spending at magazines grew 18.8% to $2.7 billion in 2011.

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Steve Hall

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