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GroupM: '11 Global Internet Ad Spend Hit $85 Billion

If you talk to any online publisher, chances are they will argue that there is not enough money being spent in online advertising. Fortunately each year online spending continues to increase, we’re even noticing this within the online video as Casale Media shared recently.  GroupM reports earlier this morning that in 2011, the total global interent advertising spending reached $84.4 billion, representing a 16 percent increase over the previous year and accounting for more than 17 percent of all global measured advertising expenditures, according to a new report from GroupM.

North America Leads Online Advertising Spending By Region

North America continues to lead the pack among other regions across the world as digital ad spending reached $34.5 billion; Asia-Pacific came in second with $24.8 billion followed by Western Europe with $21 billion.

The study also predicted that in 2012 digital advertising spending will reach $98.2 billion globally, almost 16 percent more than this year. The figure represents almost 19 percent of all measured advertising investment. In the 2012 forecast, North America once again ranks first with an estimated $38 billion in digital ad spend; Asia-Pacific follows with $31.4 billion followed by Western Europe with $23 billion.

This Year, Next Year: Interaction 2012

  • Digital advertising’s share of total ad investment rose from 4.4 percent worldwide in 2004 to a projected 18.8 percent in 2012.
  • The average percentage of consumers’ “media time” spent online increased from 11 percent in 2006 to 19 percent in 2011. The absolute number of broadband homes worldwide has nearly tripled in this period to reach 500 million, and the typical country has seen broadband penetration grow by half.
  • Aside from general monetary inflation, ad investment growth has two main vectors: aggregate audience hours, and advertising intensity per individual. Average online advertising investment per online user doubled between 2006 and 2011. For 2011, Norway had the highest per-capita online ad investment in the study’s sample–$200.
  • E-commerce accounts for about 5 percent of global retail sales today, with instant-on devices, secure and simple payment, vouchering, and the optimization of retail for mobile serving as catalysts for growth.
  • Consumer tablet penetration reached double digits in only three of the survey’s countries in 2011: the US, Finland and South Korea. However, take-up is expected to be rapid and nine countries should reach double digit penetration in 2012.

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