More money being spent on media ads
Posted on Jan 3, 2014 by YuMe
The ascension of online video ads has been huge for media spending, but that doesn't mean other areas have been in a slump. According to a report from eMarketer, total spending reached $171.33 billion by the end of 2013, which was up more than $6 billion and 3.8 percent from 2012. This rise is not expected to end anytime soon either. As mobile devices will continue to spread, more technology is being created and big-time events, such as as the FIFA World Cup, will mean a huge amount of investment from businesses.
The "US Ad Spending: 2013 Year-End Forecast and Comparative Estimates" report found that there has been more spending than anticipated and showed a consistent rise in money expenditures through at least 2017. The report predicted that there would be $17.27 billion spent in 2014, a 4.1 percent rise from the previous year. By 2017, it is forecasted that there will be $198.43 billion spent, which eMarketer said would be a 3.3 percent rise from 2016's collective budget. All of this should show companies that have not been investing in things like mobile video ads and media spots that now may be the time to start looking, or else they may get left in the dust.
An article from The Wall Street Journal backed up the claims of increased spending in the ad world, as the news company spoke with some of the biggest ad companies in the world. Many have predicted faster ad spending in 2014 than in previous years, even though there are still concerns about the economy that may mute the forecasts a bit. However, as eMarketer had stated, 2014 is a big year for event-based programming, with midterm elections and sports tournaments, which will likely lead to increased intake of media by viewers.
Listing projects from GroupM, the Journal said there will be a 4.6 percent growth in ad spending in 2014 to $531 billion. While this is down from the previous forecast the company made in August of 5.1 percent, it is still a sizable increase that shows the industry is likely headed in the right direction. GroupM's report found that Latin America actually had the most to gain with a 9.3 percent increase. The U.S., on the other hand, may see a growth of just under 3 percent for the year.
Don't put all eggs in one basket
Although online and mobile video ads are continuing a huge rise, the eMarketer report said companies may not want to invest their entire budget in one area. TV is continuing to be the top area of investment, as expenditures will grow to $75.25 billion from 2013 to 2017. However, it will lose about a percentage point of investment during those years, showing that the growth is slower than that of online and mobile. Instead of completely putting all eggs in one basket, businesses should use these numbers to dictate how they will be investing in TV, mobile and online ventures. No single format has it all, so diversifying may be the best choice.
Speaking to this, Search Engine Watch said agile video marketing will likely become the new norm for 2014. Quickly crafting videos and knowing where they will go as soon as possible in response to feedback, news trends and other viral videos will be important to get the most out of a campaign. Time is not on the side of advertisers anymore; there is a need to be swift when it comes to the creation and implementation of an online video ad campaign.