Interesting news out of WPP company GroupM (no relationship to GROUP1201). Their latest report offers a glimpse into the growth of worldwide online spending, which they expect to grow to 15% of overall ad spend.
What's interesting is not just that this growth is coming from search and other non-display online advertising, or that display advertising itself is not growing on pace with other online marketing strategies. The really fascinating thing is that this study takes into account overall spending of marketers, which as a group, is incredibly large.
So, for smaller advertisers who don't have budgets of say $1 billion+ per year like General Motors, this percentage growth is likely to be even higher than 15% of overall spend. The other thing not mentioned here is that online advertising has traditionally been less expensive, when display advertising is compared to its offline relatives, print and broadcast. We suspect that this revenue discrepancy is also the reason for the 15% not being higher (trading a $10,000 print ad for a $3,000 online ad does not significantly shift the overall percentage of a $100,000,000 budget).
All in all, an interesting report. We'd like to see what the tactical shift is for general advertising, however it can be expressed (units of some sort). Although this is insightful news, I'm not sure if the monetary shift gives due justice to the larger change taking place.
At the very least, it should send a message to marketers still clinging to the notion that online is a future opportunity and not one for today.
A summary of the study can be read here: http://tinyurl.com/mqzueh
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