Although the Internet is now competing strongly with television for viewer time, the small screen still takes the lion’s share of advertising expenditure. Why is this? Is there currently any real increase in display advertising?

TV Still Dominates Advertising Spend

Is it probably fair to say that those who were betting on the gradual disappearance of television in the face of the multi-screen threat jumped to their conclusions rather too quickly. According to the Global AdView Pulse report, a newly-published quarterly report from US-based global information company Nielsen for the first quarter of 2013, the small screen remains the dominant medium worldwide in terms of advertising investment, and the situation is deemed unlikely to change in the near future. However, the report points to exponential growth in advertising spend on the Internet in emerging markets, notably in China and Latin American countries.

Television still number one

 Television alone accounts for 59% of total media share of advertising, with estimated worldwide growth of 3.5%. Europe is the only region in the world showing a decrease (down 2.9%) in advertising investment.  “Compared with the Internet, television remains for marketing people the easiest means of buying advertising and the surest way of reaching thousands of different audiences,” explains Emmanuel Parody, head of CBS Interactive France. The media business specialist argues that while it is clear that TV audiences are being fragmented by the arrival of new players, audience erosion remains minimal compared with an Internet audience that is scattered over millions of websites. Moreover, “video on demand (VOD) provides one potential means for TV channels to retain some of their audience,” he points out. As for print advertising, while magazines and newspapers combined represent nearly a third of the total advertising spend, this figure continues to decline worldwide, falling by 2.8% and 4.7% respectively on Q1 2012.

Emerging countries most dynamic for display Internet advertising

 So where does the Internet stand today in the media advertising landscape? At the moment, it only accounts for a modest 4.4% share of advertising expenditure. It should be noted that the report takes not only display ads into account but includes other forms of online advertising such as affiliate marketing, direct marketing, mobile marketing, etc, as well. In fact display Internet advertising shows the strongest growth of all advertising media at 26.3% for first-quarter 2013. Growth was particularly impressive in emerging countries, notably the Asia-Pacific region and Latin America, where the spend increased by 33.2% and 48.2% respectively.


By Ruolin Yang