Digital global ad spend may rise to $545bn by 2014

Increased expenditure on digital and mobile marketing this year may lead to astronomical rise in global advertising spend by 5.7 percent or $545 billion, according to industry analysts and also a survey by a research firm, EMarketer.

According to a report, it is estimated that total media spending may top $545 billion, compared with $516.2 billion last year, representing a gain of 2.6 percent over that of 2012. The research firm said in a report that digital advertising was forecast to increase an estimated 16.7 percent to $140 billion, and will for the first time, account for more than 25 percent of total advertising spending.

While mobile advertising will be one of the major drivers of budgeting in the current year, the just ended soccer World Cup in Brazil and the Winter Olympics in Sochi have also given marketers a boost.

Internet companies such as Facebook, Google and Twitter are battling to generate more revenue from mobile advertising as consumers increasingly use smart-phones and tablets to shop, play video games and communicate on social networks.

The increase is the largest growth projection for global advertising spending since EMarketer began tracking the market six years ago. The report said that within digital marketing spending, mobile marketing will increase 85 percent to $32.7billion this year, representing almost a quarter of all online media expenditure.

EMarketer forecasts that by 2018, the application of mobile advertising spends will account for more than 50 percent of all online media, which in turn will account for about one-third of total advertising spending.

Dan Marcec, director of public relations for EMarketer, said in the a report “The learning curve for mobile is all starting to get figured out now. Publishers like Facebook and Google have started to understand consumer behaviour on these devices.”

While mobile advertising expenditure as a percentage of digital media spending will approach 70 percent in the United States by 2018, in China, it will be about 30 percent. In emerging markets like Indonesia and India, mobile advertising will remain a comparatively small portion of digital ad spending throughout the forecast.

China, the world’s most populous country, is forecast to be the second-largest advertising spender, even though marketers may spend just $37 a person. On the other hand, the United States is estimated to be the leader in advertising spending, with more than $180 projected this year, and an estimated $565 a person.