Internet-based advertising keeps hitting the high notes each passing year. The Internet Advertising Revenue Report, conducted by PricewaterhouseCoopers, reported that digital media advertising surpassed the allocation for broadcast television in the US for the very first time.
Last year, it totalled $42.8 billion on digital platforms against $40.1 billion on TV advertising. The supremacy of digital over TV, however, is only valid if those pulled in by pay-TV channels are not considered. Last year, these had $34 billion coming in from advertisers.
Among the ad formats companies found interesting, search engines (Google Adwords, for example) accounted for 43 per cent of the total; display/banners ads had 19 per cent of marketer budgets, mobiles platforms came close with 17 per cent, and ads in videos had 7 per cent.
Mobile was the fastest-growing category, with 15 per cent as compared with 9 per cent in 2012 and 5 per cent in 2011. “Digital has steadily increased its ability to captivate consumers and then capture the marketing dollars that follow,” said Randall Rothenberg, president and CEO of Interactive Advertising Bureau.
“Mobile advertising’s breakneck growth is evidence that marketers are recognising the tremendous power of smaller screens. Digital video is also on a positive trajectory, delivering avid viewership and strong brand building opportunities.”
A better broadband connection and penetration do not mean a better online investment. The UAE has a 75 per cent internet penetration, but TV still has a broad reach among advertisers. Research by Go-Gulf reveals that total digital ad spend in the Middle East was 6 to 10 per cent of the global total in 2013.
