Why 2012 Online Advertising will Surpass Print, but not TV
Online advertising spending will surpass print advertising for the first time this year, according to a study released this week by eMarketer. With total ad spending expected to increase more than 6% in 2012, to $169.5B, online advertising spending is expected to increase 23%. Although 20%+ year over year increases in online advertising spending will not be sustainable, it’s a healthy bump, especially in our tenuous economy even with it being an election year.
While some believe tablets will be the death of magazines and newspapers, I believe tablets will further extend and enhance the value of online advertising to the advertiser, by the capability to target and measure, and to consumers, by the power to enhance their experience and share content with their network.
Marketers are expected to continue cutting print advertising budgets, spending 10% less than last year. Online advertising spend is forecasted to be $5.7B more than print advertising spend this year, as reflected in the chart below.
TV advertising spend, on the other hand, is expected to increase, albeit modestly, over the foreseeable future. However, the gap with online advertising spending is closing significantly over the next 7 years.
As content delivery with the screens converge, it may be more difficult to delineate from TV advertising consumed on a TV versus a tablet or mobile device. Many wars are yet to be fought on the device delivery advertising grounds.
Comments
People are spending more time online than they are reading print, so it makes sense that the trend will go that way. As more people begin watching television on a computer or mobile device, it will be interesting to see how TV advertising is affected.
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