Global Ad Spending Continues to Rise
Ad spending in the second quarter increased by 3.5% compared to the same period last year. The spending totaled $35.8 billion in the second quarter of 2013. This boost is a result of two unusual phenomena. First, ad spending was deflated last summer as advertisers allocated their advertising budget prior to the Summer Olympics. Second, this year’s NBA playoffs had more games, giving brands more opportunities to advertise.
Global digital advertising spending will likely continue to rise with the launch of wearable devices and the rise of smartphones in developing markets. Although it is still too early to determine the potential of wearable devices, many experts believe these products are the future of technology. And if they are correct, there will be new, unprecedented advertising platforms that allow brands to target consumers like never before such as showing promotions on your Google Glass as you enter a retail store. Aside from wearable devices, the surge in smartphone sales in emerging economies will also contribute to the growth of ad spending. According to Forbes, smartphone shipments will top 1 billion units by 2017, where emerging markets will account for 70.6% of all sales. This will make mobile advertising remain a powerful marketing tool that enables brands to tap into economies where potentials are limitless.
Read the whole article at Ad Age.