GLOBAL ADVERTISEMENT SPENDING US$503 BILLION IN 2013 7.0% 8.5%, 18.7% 2012 0.6% 6.9% 18.3% Share of...

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GLOBAL ADVERTISEMENT SPENDING US$503 BILLION IN 2013 7.0% 8.5%, 18.7% 2012 0.6% 6.9% 18.3% Share of global advertisement spend by medium (%) 2015 0.6% 40.0% Television Internet Newspapers Magazines Radio Outdoor Cinema 6.8% 7.0% 6.6% 14.9% 24.6% 39.5% Television Internet Newspapers Magazines Radio Outdoor Cinema Share of global advertisement spend per medium (%) Global expenditure on advertising increased by 3.5% in 2013 to reach US$503 billion with an increasing proportion spent on internet (digital) advertising. In the USA digital advertising accounted for 21.8% of all advertisements spend in 2013, up from 19% the year before. Meanwhile, mobile advertisements (cell phone advertising) in the USA accounted for 3.7%. Mobile advertising is growing more rapidly than any other media, growing by 81% in 2013 in the US market. Compare that to internet advertising, which is growing by around 16% and will account for 27.8% of all US advertisements spend by 2015. Globally, mobile advertising is worth $8.3 billion, 1.7% of advertising across all media. 'By 2015 we forecast this total to rise to $33.1 billion, which will be 25.2% of internet expenditure and 6.0% of all expenditure,' the analysts write. The rapid adoption of smartphones and tablets is driving the growth in mobile advertising. On top of the fact that some believe sales of tablets are set to overtake those of PCs by the end of 2015, for many consumers smartphones are becoming the primary way that they go online. 20 marks, 40 minutes 1. State two types of advertising media that are expected to see a fall in their share of advertising expenditure by 2015. 2. Explain two reasons why the share of advertising spending on the internet is expected to grow by 2015. 3. Analyse one implication for television companies of a decline in their share of advertising expenditure. 4. Evaluate the impact of a rise in the adoption of smartphones and tablets on the promotional strategy of a business. [2] [4] [4] [10] GLOBAL ADVERTISEMENT SPENDING US$503 BILLION IN 2013 7.0% 8.5%, 18.7% 2012 0.6% 6.9% 18.3% Share of global advertisement spend by medium (%) 2015 0.6% 40.0% Television Internet Newspapers Magazines Radio Outdoor Cinema 6.8% 7.0% 6.6% 14.9% 24.6% 39.5% Television Internet Newspapers Magazines Radio Outdoor Cinema Share of global advertisement spend per medium (%) Global expenditure on advertising increased by 3.5% in 2013 to reach US$503 billion with an increasing proportion spent on internet (digital) advertising. In the USA digital advertising accounted for 21.8% of all advertisements spend in 2013, up from 19% the year before. Meanwhile, mobile advertisements (cell phone advertising) in the USA accounted for 3.7%. Mobile advertising is growing more rapidly than any other media, growing by 81% in 2013 in the US market. Compare that to internet advertising, which is growing by around 16% and will account for 27.8% of all US advertisements spend by 2015. Globally, mobile advertising is worth $8.3 billion, 1.7% of advertising across all media. 'By 2015 we forecast this total to rise to $33.1 billion, which will be 25.2% of internet expenditure and 6.0% of all expenditure,' the analysts write. The rapid adoption of smartphones and tablets is driving the growth in mobile advertising. On top of the fact that some believe sales of tablets are set to overtake those of PCs by the end of 2015, for many consumers smartphones are becoming the primary way that they go online. 20 marks, 40 minutes 1. State two types of advertising media that are expected to see a fall in their share of advertising expenditure by 2015. 2. Explain two reasons why the share of advertising spending on the internet is expected to grow by 2015. 3. Analyse one implication for television companies of a decline in their share of advertising expenditure. 4. Evaluate the impact of a rise in the adoption of smartphones and tablets on the promotional strategy of a business. [2] [4] [4] [10]

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