Magnaglobal, a devision of IPG Megabrands, has released their forecast for ad expenditures for 2012 and they claim, non-traditional spending, in other words, online advertising, will increase by over 12% this year. That means marketeers and advertisers will be sinking about $36 billion into internet advertising alone.
Vincent Letang, EVP and head of global forecasting at MagnaGlobal comments on the increased spending:
“Encouraged by the rise of smartphone and tablet usage and the availability of scalable platforms, mainstream advertisers are now fully embracing all mobile formats (display, search, video, in-app),”
Amongst other growth expected this year are mobile-targeted ad revenues, forecasted to grow by as much as 53%, and paid search, expected to grow by 24%. The big spenders this year are expected to come form technology, telecom, and finance, which comes as no surprise after seeing what consumers are spending their budgets on.
As you might expect, most retail manufacturers and pharmaceutical companies won’t be spending as much due to poor sales. The automobile industry might cut back the most on ad spending on account of steep increases in fuel prices. Overall, the weak economy, hurt by unemployment and conservative spending, doesn’t look all that great.
Magnaglobal does say that spending revolving around the upcoming elections and the 2012 Summer Olympics could spur some revenue growth in the latter half of 2012. We’ll have to wait and see what financial news the rest of 2012 brings, but it doesn’t look that encouraging overall.