Digital Spend by Big Agencies Now Approaches 25%

Not that this is really news to anyone, but advertising dollars continue to shift online.  Four of the Big 6 agency holding companies, Aegis, Havas, Interpublic, and Publicis have contributed to a report by Standard Media Index, which is the best view to date of how dollars are allocated by big agencies on behalf of global brands.

Fueled by double digit growth in every sub-segment, overall digital spending rose 17% during the first quarter to 23.5% of agency media buys.

While mobile (+92%) and exchange-based digital buys (+46%) were the fastest growing sectors, display (+12%) and search (+12%) still account for dominant shares of digital spending. During the first quarter, direct-from-publisher display advertising accounted for 8.6%, and search accounted for 6.2% of all buys made by the major agencies.

We have been anticipating this shift, and have moved ZEDO in several new directions to accommodate it. Behind the scenes, we have strengthened our ad server for greater security, scalability, response time and redundancy. We have made more than two dozen new development, implementation, and account management hires during the last two quarters as we continue to grow with the industry we pioneered. And we are opening our New York office, hopefully on Madison Avenue.
On the product side, far more visible are our high impact formats, which are available to agencies through our new ZINC platform and available to publishers for direct and programmatic sales through ZEDO. Those formats, many tested by ComScore at 99% viewability, include the InView Slider, and FullScreen Video on the Web, the most engaging formats in the industry at this point.
With all the changes in how advertising is bought, display advertising spend still increased 10% in 2012, partly because Latin America is coming online. One of the reasons we strengthened our ad server was to get ready for this global scale as 2 billion people come on the internet this year, many of them through mobile devices. Our high impact formats work well on those devices, especially in the fast-growing tablet market — the favorite way to read news for most consumers.
These formats fit right into where marketers are going: away from direct response, where falling CTRs and falling CPMs are driving both the advertising and the publishing side of the industry to a bottom, and toward brand building — where online advertising will be far more effective. Marketers say brand advertising will pass direct response this year:

63% of marketers project that the dollars allocated to online brand advertising will grow in 2013, while one in five believe the increase will exceed 20%, according to Vizu, a Nielsen company, and the CMO Council.

 

We’re happy to see better creative, which comes with brand advertising, come into the industry at last. We’re sure it will help realize the potential of digital advertising.

 

 
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