In A New Milestone, The Internet will Account for Half of Ad Spending- Report
For the first time, the internet in 2020 will account for more than half of both U.S. and worldwide ad spending. That’s a key takeaway from Ad Age Marketing Fact Pack 2020, an annual guide to marketers, media and agencies. Five quick takes from the Fact Pack: 1. The average of forecasts from WPP’s GroupM, Interpublic Group of Cos.’ Magna and Publicis Groupe’s Zenith suggests U.S. ad spending growth of 6.5 percent in 2020, boosted by political spending and the Summer Olympics. Consensus for 2020 worldwide ad spending: +5.0 percent. 2. Zenith expects U.S. internet ad spending to jump 12.4 percent in 2020 to $135 billion, accounting for 53 percent of ad spending. GroupM forecasts worldwide internet ad spending to increase 11.1 percent in 2020 to $326 billion, capturing 52 percent of ad spending. 3. GroupM estimates that 2019 worldwide marketing spending totaled $1.6 trillion to $1.9 trillion. That includes media spending, services (agencies, information technology consultancies focused on marketing), software (ad tech, marketing tech) and a big slice of “other” (data, partner support, events, in-house activities, sales, retail activation, sponsorships). 4. Employment at U.S. internet media ventures (277,000 in October) has doubled since early 2013, according to figures from the Bureau of Labor Statistics. Ad agency employment (206,100 in October) is a bit below the all-time high reached in 2018 (208,700). The U.S. unemployment rate (3.5 percent) is at its lowest level since 1969. 5. Americans age 15-plus spend more than half of their weekday leisure time watching TV, according to the Bureau of Labor Statistics’ annual time-use survey. But many TV viewers are multitasking. Nearly half (about 46 percent) of adults either often or very often use a mobile phone to text or access the internet while watching TV, according to MRI-Simmons. Download Ad Age Marketing Fact Pack 2020 Download your free copy of Ad Age Marketing Fact Pack 2020 here.