ad spend

Big Spenders on a Budget: What the Top 200 U.S. Advertisers Are Doing to Spend Smarter

The 200 Leading National Advertisers accounted for 51% of U.S. measured-media ad spending and nearly two-thirds of TV advertising in 2014. U.S. Ad spending for these companies rose a slim 2.0% in 2014, but the story is not that marketers are pulling back. They are spending smarter.

Procter & Gamble Co., the nation’s and world’s largest advertiser, is among those making the pitch to Wall Street that digital is more efficient.

“We’re shifting more advertising to digital media, search, social, video and mobile as consumers spend more time there,” P&G Chief Financial Officer Jon Moeller said at a June investor conference. “In general, digital media delivers a higher return on investment than TV or print.”

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Digital Ad Revenue Increases by 16% in 2014

MediaDailyNews reports on an IAB Internet Advertising Revenue Report showing that U.S digital advertising revenue rose 16% to $49.5 billion in 2014 compared with 2013.

This report, which was prepared by PricewaterhouseCoopers, also shows that social media advertising revenue was $7 billion.  This increase reflects a 57% increase in 2014.

David Silverman, a PricewaterhouseCoopers partner who participated in the IAB conference call, believes that brands have developed strategies to monetize their investments in social media. As a result, there has been an increase in the cost per click for ads running on networks, such as Facebook.

Mobile advertising increased by 76% to $12.5 billion.  Search, digital video, and non-mobile display-related advertising also showed revenue increases.

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TV Ad Spending Remains Soft, While Social and Video Jump

Magna Global expects TV ad revenue to decline 2.9% in 2015, including the impact of political and Olympic spending, as reported in the Wall Street Journal . US ad growth in general is hampered by ‘digital deflation’ — the idea that media companies don’t earn as much for their content in digital formats as they do traditionally. Read more »

63% of Marketers to Increase Native Ad Spend

Almost two thirds of respondents expect to increase their native advertising budgets in 2015, according to an ANA survey of member marketers. Currently, native advertising only accounts for a small percent of  budgets– five percent or less for the bulk of respondents (68%). Other findings from this report:

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Ad Companies Slightly Lower 2015 Global Ad Forecasts

The Wall Street Journal reports that forecasts released by GroupM, ZenithOptimedia and MagnaGlobal each placed 2015 growth of the global advertising market at around 5%, driven by digital advertising. These projections reflect a slight downward revision versus previous estimates.   Read more »

Native Ad Spending to Jump Despite Marketer Reservations

Top marketers including Ford, Kimberly-Clark, GE, and HP plan to increase spend in native advertising, according to eMarketer. The research firm forecasts spend at $4.3 billion in 2015, a 34% increase versus the current year. This figure will climb to $8.8 billion by 2018. Read more »