Stamford, CT - September 30, 2015 - Global advertising & marketing revenues increased almost 5% in 1H15, following a 4.5% gain in 2014 when total advertising & marketing aimed at the consumer market exceeded $1 trillion for the first time ever, reaching $1.026 trillion, according to the first of three reports in the PQ Media Intellicast Series being released today on the brand marketing ecosystem. Key growth drivers include the continued shift by consumers from traditional media platforms to digital & alternative media; expansion of ad-skipping technologies & over-the-top streaming services; strengthening of Western European economies that led brand to expand budgets; and even-year events such as international sporting venues (World Cup) and federal & local elections, according to PQ's Global Advertising & Marketing Forecast 2015-19.
Advertising media accounted for a slightly larger share of brand marketing than marketing media in 2014 - 50.2% vs. 49.8%, but marketing media registered a slightly stronger growth rate, rising 4.7% vs. 4.4% for global advertising. Meanwhile, digital & alternative media platforms represented a 28% share of overall global advertising & marketing in 2014, up from 18.5% in 2009, and outpaced traditional media growth, surging 12.8% during the year compared with only a 1.6% gain for traditional advertising & marketing. Direct marketing was the largest of the 15 media silos tracked by PQ Media, reaching $217.32 billion worldwide in 2014, while entertainment media advertising, such as videogame advertising, was the fastest growing platform, rising 28.2%. Mobile search marketing was the fastest growing of the 39 digital & alternative channels, soaring 77% in 2014, while online search marketing was the largest channel, reaching $51.41 billion.
According to Patrick Quinn, PQ Media's CEO & COO, "This is the only in-depth and actionable KPI benchmark report to define, segment, size and project the velocity and trajectory of the entire brand marketing ecosystem including many of the marketing media not covered elsewhere, such as promotional marketing and the dynamic content marketing silos, as well as in-depth analysis of digital & alternative media that PQ Media has covered since its inception, including product placement marketing, digital out-of-home advertising, and word-of-mouth marketing."
The United States is the largest market for advertising & marketing worldwide at $358.91 billion in 2014, commanding a 38.7% share of total revenues, more than the combined total of the other top-10 markets, including Japan, China and United Kingdom. The US ranked sixth in growth, rising 4.4%, but significantly behind markets that registered double-digit gains in 2014, such as Brazil and India. The shift from traditional to digital & alternative media continues in the US, with 30.5% of the revenue generated by platforms like internet advertising, mobile marketing, and consumers events, which placed seventh globally behind nations like the UK, Australia and South Korea.
Quinn stated, "Media buyers are growing frustrated with the increase of advertising & marketing vehicles available to them, which reached over 175 categories in 2014 versus less than 50 back in the 1970s. Agencies are being introduced annually to new advertising & marketing options, such as retail mobile beacons that use wireless devices to message target audiences near the point of purchase, as well as sponsored multi-channel networks (MCNs) on YouTube that leverage growing consumer social media consumption."
Additionally, brands are relying more heavily on integrated, cross-media, omni-channel campaigns that use multiple channels to target buyers more efficiently through the analysis of big data. In some instances, programmatic tools are being used in the media buying process that leave all the decisions up to computers which share demographic data and inventory availabilities. Driving the changes are coveted generations, like i-Gens and Millennials, who use less media than older generations and tend to lean more heavily on content from digital versus traditional media, as PQ Media has related in the past editions of the second report in the PQ Media Intellicast Series on global consumer media consumption & exposure, with the next edition due out in November.
PQ Media's Global Advertising & Marketing Forecast 2015-19 tracks the two branded marketing revenues streams - advertising media and marketing media; two media sectors - digital & alternative (D&A) media and traditional media; 15 media silos like total direct marketing and total broadcast television advertising which combine the D&A media and traditional media revenue results (e.g., terrestrial TV advertising + online TV advertising + mobile TV advertising); 10 D&A media platforms, such as internet advertising and mobile marketing; 11 traditional media platforms, such as terrestrial radio advertising and traditional public relations marketing; and 39 D&A media channels, such as online display advertising, mobile video, audio & rich media advertising, digital billboard advertising, online search marketing, mobile app marketing, and digital-only content marketing.
PQ Media projects that global advertising & marketing will rise by a compound annual rate (CAGR) of about 6% during the 2015-19 period to exceed $1.35 trillion, while the US market will increase at over a 4% CAGR to more than $500 billion in 2019.
PQ's new annual Global Advertising & Marketing Forecast is designed to help management teams at leading brands, agencies, content publishers, market data providers, management consultants and private investors make smarter, faster business decisions during a seminal transformation reshaping the media ecosystem. The user-friendly slide deck and value-add deep-dive datasets and analytics are unmatched in delivering a cohesive global industry map to analyze, share ideas, better understand, plan strategically and execute the key tactics that will drove more effective, efficient and integrated media campaigns with confidence and leadership.
PQ Media is a leading provider of actionable econometric data and analytics that drive strategic growth objectives for global media, entertainment and technology companies.