Online Ad Spending Will Top Print This Year, Nearly Double Itself By 2016

Advertising on the web becoming more and more expensive with every year that goes by while it is a for many online business owners a double edge sword- On one hand they can benefit from higher ad revenue and on the other hand they need to pay more on advertising/marketing…

According a new analysis and forecast from the research firm, eMarketer, the online ad spending in the U.S. is predicted to increase in big percentages until 2016, however, it will decline from strong double digits yearly growth to one digit growth in 2015-2016.

Online Ad Spending US 2011-2016

2011 has demonstrated a big increase of online spending (23% growth) to $32 billion and 2012 predicted to follow at the same rate- 23.3% growth to $39.5 billion. But from 2013 to 2016 the growing rate will keep declining gradually, although it will still show significant rising of online advertising spending where in five years it will nearly double itself (to $62 billion in 2016).

The biggest beneficiaries from the online ad spending growth are the top ad selling companies (mostly Google, Facebook and Microsoft) which constituted for about 70% of all ad revenue on the internet. This report is actually a light correction to the prior forecast of eMarketer by a few percentages up.

Online Will Surpass Print Ad Spending This Year

The paper industry is declining since the rise of the internet, which also reflects in advertising spend. While until 2011 the print media (includes newspapers and magazines) ad spending traditionally overtaken the online ad spending, in 2012 it is predicted to roll over.

Online VS Print Ad Spending 2011-2016

Until 2016 online spending will increase drastically, while the print media ad spending will decrease by about 10%. This will cause the online ad spending in 2016 to be nearly two times higher than the print media ($62 billion compared to $32.3 billion)!

TV Will Remain Ad Spending Leader

Although online ad spending is growing in faster rates than the TV ad spending, until 2016 at least TV is predicted to remain on top. However, the gaps between the two will narrow down drastically: In 2011, the TV has generated nearly 90% more ad revenue than the online industry and in 2016 it will drop to only 16% more gap.

Online VS TV Ad Spending 2011-2016

At this point i want to go back to the double edge sword i mentioned at the beginning. Online business owners must find the right formula in the next few years to keep their advertising/marketing budget steady or to increase it slightly every year in order to benefit the most from the online ad spending rising.