Splitting the Spend: Media Agencies and the Online Dollar

global ad spending in 2011 SPLITTING television still dominates but online opportunities $72 are changing the game INTERNET TELEVISION $190 BILLION BILLION the SPEND NEWSPAPERS $93 BILLION media agencies and the online dollar. MAGAZINES Altogether, the global ad spend is expected to be up 4.2% in 2011. $43 BILLION OUTDOOR $31 Source: Zenithoptimedia, April 2011. RADIO The U.S. share is an $33 BILLION estimated $151 billion. Source: Zenithoptimedia, April 2011. BILLION INTERNET ON THE RISE U.S. online ad revenues were $26 billion in 2010, up from $22.7 billion in 2009. Digital services accounted for 28% of revenue for 800 agencies surveyed, up from 25.8% in 2009. And online ad spending is anticipated to be $28.5 billon In 2011. AGENCY REVENUE However, 60% of that is from Source: Ad Age Agency Report 2011 digital-specialty agencies. 02 03 04 05 06 '07 08 09 10 Already, online revenue for 2011 Q1 was from the previous year, for the highest Q1 ever. Self-iden likely to use boutique social media agencies in lleu of traditional agencies for social business. 23% Ivanced"companies are more Source: May 2011 IAB Revenue Report, April 2011 eMarketer report 35% use traditional agencies 10% of online spending will be used to advertise on social networking sites. 59% use boutique agencies Source: Febnuary 2011 Altimeter Group report Source: April 2011 eMarketer report case atudy In 2010, Coca-Cola cut its overall ad spend by 6.6% and invested more in social media. ONLINE SPENDING BREAKDOWN Nearly half of online ad revenue in 2010 came from search, with display growling. 46% SEARCH 24% DISPLAY Representing 10%, classifieds are decreasing. Source: The Grocer Top 100 report The rest went to rich media (6%), lead generation (5%), Source: AB Pevenue Peport digital video (5%), sponsorship (3%) and email (1%). VIDEO 45% of Americans see video ads online, for a total of more than 1.7 billon minutes in January alone. AD PROPERTIES Google Ad Network leads online ad property rankings, with 93.1% reach in January of Americans who use the internet. case atudy 3 of the Top 10 most-shared YouTube videos in February 2011 originated as Super Bowl ads, including No. 1 (VW: The Force) and No. 2 (Chrysler's Made in Detroit featuring Eminem). 26% 93.1% Google Ad Network 85.5% Yahoo! Network Plus Hulu accounts for more 85.0% AOL Advertising 84.5% Yahoo! Sites than a quarter of video ad views, with 1.1 billion of a total 4.3 billion 80.5% Google 79.7% Tum Media Platform Source: Marketing Charts Data Box 2011 in January. Source: comScore 79.6% ValueClick Networks 78.0% 24/7 Real Media 73.7% AdBrite Though growing, Internet spending lags in proportion to how much time Americans spend online and with mobile. |72.3% Facebook Facebook made Its first Top 10 ranking appearance with 72.3% reach. Advertisers spend 53 cents for every hour adults spend with newspapers, but only 12 cents for Internet and 1 cent for mobile. Source: combcore Meda Metrix Ad Focus Rankings for January 2011 of social media users connect with 25% companles. Of that groups of users, 53 12 1° Source: eMarketer ad spending study, March 2011 Source: May 2011 Edison Research and Arbitron report Mashable Infographics Created by @lisawaananen