New PQ Media Research: Global Digital & Alternative Media Revenues Grew13% in 2012 to $226 Billion; Growth Pacing Up 14% in 2013 on Mobile & Internet Media, BRIC Markets

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Global digital & alternative (D&A) media revenues increased 13% to $226 billion in 2012, driven by strong growth in mobile, internet and other digital media channels in the BRICs, UK and Australia, according to new PQ Media research. PQ Media released the first of three reports in a new series analyzing the changing media ecosystem from three critical vantage points: media operator revenues, consumer media usage, and consumer spending on digital content and technology.

“While mobile and internet media channels dominate our global rankings, other D&A media channels are also fueling growth in some countries, such as digital signage in China and product placement in Brazil," said Patrick Quinn, CEO, PQ Media.

Global digital & alternative (D&A) media revenues increased 13.4% in 2012 to $226.03 billion, driven by strong growth in mobile and internet media channels in the BRIC markets, the UK, South Korea and Australia, according to data released today by PQ Media. Powered by accelerating growth after the Great Recession, D&A media’s share of total advertising and marketing revenues worldwide reached 22.9% in 2012, up from only 13.3% in 2007, according to the PQ Media Global Digital & Alternative Media Revenue Forecast 2013-17.

Despite the sharp growth deceleration in 2009, global D&A media revenues increased at a compound annual growth rate (CAGR) of 12.7% in the 2007-12 period, far outpacing traditional media growth and global economic expansion. While total D&A advertising revenues – including internet, D&A out-of-home, mobile, and other digital ad channels – grew faster in the period (16.1% CAGR), the D&A marketing sector – comprising internet, consumer events, product placement, mobile and word-of-mouth channels – is much larger with overall revenues of $136.37 billion in 2012, according to PQ Media.

Key drivers of global D&A media growth included the rapid expansion of broadband and mobile device penetration, growing use of social networks, and increased media consumption outside homes. D&A media growth was further bolstered over the past five years by record media spending during the Summer Olympics held in China (2008) and the UK (2012), contentious US presidential elections in both of those years, the World Cup in South Africa (2010), and the Queen’s Diamond Jubilee in 2012. Economic struggles also hampered a number of major global markets in 2012, particularly in Europe, where media operators were forced to delay market expansions and technology investments.

“D&A media’s strong growth continued amid a significant deceleration in major global economies in the second half of 2012, including the fast-growing BRICs and the leading US market,” said Patrick Quinn, CEO, PQ Media. “While mobile and internet advertising and marketing channels dominate our worldwide growth rankings, other D&A media channels are also fueling growth in some countries, such as digital billboards & signage in China and television product placement in Brazil.”

The PQ Media Global Digital & Alternative Media Revenue Forecast 2013-17 is the first report in a new research series analyzing the rapidly shifting global media ecosystem from three critical vantage points (see more detail at end of release). This first report provides detailed revenue and growth data focusing on the D&A advertising and marketing sectors, nine major D&A media platforms and 40 media channels worldwide, drilling down into the 15 leading countries.

Global D&A advertising revenues grew 15.6% to $89.66 billion in 2012, as the internet was the largest global advertising platform and mobile ads posted the fastest growth, according to PQ Media. Global D&A marketing revenues climbed 12% to $136.37 billion in 2012, with online marketing replacing consumer events as the largest marketing platform, and mobile marketing producing the fastest growth. Online search advertising was the largest of the 40 global D&A media channels analyzed, generating $45.18 billion in 2012, while mobile coupon revenues grew the fastest, soaring 115.2%.

The US remained the world’s largest D&A media market in 2012 with operator revenues of $91.45 billion, more than four times the size of second-ranked Japan. While the US will remain the largest D&A market in 2017, China will overtake Japan in second place. Russia was the fastest growing D&A market in 2012 (up 23.2%), but China (32.3% CAGR), India, and Brazil all grew faster in the 2007-12 period, according to PQ Media. The UK had the highest D&A media share of its total media revenues in 2012 at 29.7%, followed by Japan and Canada.

Global D&A media revenues were on pace in the first half of 2013 for a 13.6% increase for the full year to $256.70 billion, fueled by continued strong growth of internet, mobile, digital out-of-home and product placement channels and further expansion in key Asian and Latin American markets. D&A advertising revenues will rise 15.9% to $103.92 billion in 2013, while the marketing sector will expand 12% to $152.75 billion, according to the PQ Media Global Digital & Alternative Media Revenue Forecast 2013-17.

Driven by recovering economies, deeper broadband and smartphone penetration, relaxed government regulations and increased consumer media exposure outdoors, D&A media revenues are projected to rise at a 14.1% CAGR in the 2012-17 period to $436.36 billion. D&A media will account for nearly one-third of worldwide advertising and marketing revenues in 2017, as Australia, South Korea and Canada will exceed 40% shares. Russia’s market will grow the fastest, followed by India and China.

The PQ Media Global Digital & Alternative Media Revenue Forecast 2013-17 provides deep insights into major shifts impacting the 15 leading countries tracked, with consistent media definitions across markets for easy data evaluations, comparisons of digital and traditional media shares and growth opportunities. The Report features 257 tables and charts, and comes with a detailed Excel workbook providing 105 spreadsheets of data and over 80,000 data points.

About the Research Series

Due to tectonic shifts in the global media economy, PQ Media used its econometric methodology and multi-channel expertise to research and develop the PQ Media Global Digital Media & Technology Research Series. The new Series consists of three reports designed to provide the first holistic view of the worldwide media ecosystem to help executives navigate the rapid changes in media, entertainment and technology. Each report focuses on one of three key industry growth components: media operator revenues, consumer digital media usage, and consumer spending on digital content and technology. The Series covers every major digital media sector, platform and channel, and includes detailed profiles of the 15 leading countries.

About PQ Media

PQ Media is a leading provider of econometric data and strategic insights to executives in the global media, entertainment and technology industries. PQ Media employs a proprietary econometric methodology to provide clients with actionable strategic intelligence to achieve their growth objectives. The PQ Medianomics™ research system relies on comprehensive databases, proprietary algorithmic models and exclusive industry leader panels to track, analyze and forecast media operator revenues, end-user consumption and consumer spending in more than 100 digital, alternative and traditional media channels worldwide.

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Patrick Quinn
PQ Media
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Tabor Ames
PQ Media
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