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INTERNET ON THE RISE

Mena ad spend set to grow 5.5pc in 2013

Dubai, July 9, 2013

The Mena region is seeing a substantial increase in interest from international and domestic advertisers and the advertising expenditure is expected to grow 5.5 per cent in 2013, a report said.

This ad spend will firm up to 6.8 per cent in 2014 and 8.9 per cent in 2015, added the Advertising Expenditure Forecasts released by ZenithOptimedia, a global media services network.

Globally, the advertising market is on a path of steady recovery, with growth of 3.5 per cent forecast for 2013, followed by 5.1 per cent in 2014 and 5.8 per cent in 2015, according to the report.

The 2013 Q2 report reflects an increase in forecast growth for 2014 and 2015, by 0.1 and 0.2 percentage points respectively, compared with figures for Q1, but a downgrading of 0.4 percentage points for 2013.

The recovery in 2014 and 2015 will be led by Internet advertising, the principal engine of ad spend growth.

ZenithOptimedia is forecasting Internet advertising to increase by an average of 15 per cent a year between 2012 and 2015, and contribute 66 per cent of all growth in ad expenditure across the world.

This growth is being driven by digital innovations – such as better measurement of exposure to advertising, greater localisation, and integration with mobile devices – and online video and social media, which continue to grow at about 30 per cent per year.

Mobile tops Internet ads

Mobile is, by some distance, the fastest-growing segment of Internet advertising.

ZenithOptimedia is forecasting mobile to grow by 67 per cent in 2013 and at an average of 51 per cent a year between 2012 and 2015, driven by the rapid adoption of smartphones and tablets. By contrast, desktop Internet advertising is expected to grow by 10 per cent a year.

The global mobile ad spend totalled $8.6 billion in 2012, representing 9.8 per cent of Internet spend and 1.8 per cent of advertising across all media.

By 2015, this total will leap to $29.4 billion, which is 21.9 per cent of Internet expenditure and 6.1 per cent of all expenditure, according to ZenithOptimedia.

Growth in 2013 expected to equal 2012

Global ad expenditure for 2013 to grow at the same rate as last year: 3.5 per cent. There are two main factors behind this downgrading against our Q1 forecast: the continuing recession in the euro zone, and security concerns in South Korea, the report said.

“The global advertising market is continuing to show steady growth on its path of recovery. Internet advertising is driving ad spend growth, and after several years of market expectation, mobile is at the forefront of this,” said Steve King, CEO, Worldwide, ZenithOptimedia.

“Mobile devices are now integral parts of the lives of many consumers around the world, but still present huge untapped potential for marketers to engage with consumers in a personal, interactive and highly effective way,” he added. – TradeArabia News Service




Tags: Mobile | Mena | Internet | forecasts | Advertising expenditure |

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