Report: U.S. Media Ad Spending to Reach $169.5 Billion


NEW YORK: U.S. TV ad spending is expected to remain largely unaffected by the growth of online this year, according to new estimates from eMarketer, which predicts total media ad spending to increase 6.7 percent in 2012 to $169.5 billion. 

U.S. online ad spending is forecast to grow 23.3 percent this year to reach $39.5 billion. Double-digit growth is expected through 2014, when U.S. online ad spending reaches $52.8 billion, says eMarketer. In 2016, the number is predicted to reach $62 billion for online. This growth has put online ahead of some traditional media, notably print. This year, online ad spend will exceed the total spent on print magazines and newspapers for the first time. As online continues to increase, the totals for print will continue downward.

The same cannot be said for TV. The ad spend totals for television will remain largely unaffected by the growth of online. As Internet spending rises, so will TV, though at a slower pace. Television is expected to bring in $72 billion in in 2016, $10 billion more than will go to online.

Overall, total media ad spending is set to grow 6.7 percent this year, led by national election campaigns and gains in mobile spending. For the rest of the forecast period, growth is expected to be in the 3 percent to 4 percent range. Spending should reach nearly $200 billion by 2016, with online leading this growth, representing nearly one-third of total media ad spending that year. Traditional media, with the exception of television, will stagnate during the forecast period.

“Advertisers’ comfort level with integrated marketing is greater than ever, and this is helping more advertisers—and more large brands—put a greater share of dollars online,” said David Hallerman, eMarketer principal analyst.