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1 TABLE OF CONTENTS Executive Summary 2 Internet Usage 3 Mobile Internet 6 Advertising Spend 7 Internet Advertising 8 Display Advertising 9 Online Videos 10 Social Media 12 About WSI 14 Source of all statistics:

2 Executive Summary Popularity of Digital Marketing and Social Media Increase Consistently Historically, United States has been at the center of the global advertising industry and its prospects continue to look good, specifically the digital platform was a milestone year for digital media bringing it even closer to firmly establishing itself in American lives and American businesses. This year the Internet is maintaining its growth at a steady pace as can be expected in a mature market. By 2016, an estimated 262 million Americans will access the web at least once per month. Mobile phone penetration is increasing, its pace currently exceeding that of the Internet. Mobile web usage has also risen dramatically. emarketer estimates that in the next 4 years nearly 200 million people will go online regularly via the mobile. This number is 60% of the entire population in the country. The US will account for an estimated $11.7 billion in regional mobile spending in According to emarketer, United States will allocate 28.4% of its total advertising budgets on the Internet and mobile platform. In this kind of an environment small and medium-sized businesses will face considerable challenges. In a mature market like the American one, the challenges are varied. In this scenario marketers have to develop innovative ways to reach out to the audience. Advertisers also have to sustain the belief of small and medium sized businesses that digital marketing is not only cost-effective, but it is also the quickest way to communicate with their target audience. This Digital Marketing Trends Report is a brief synopsis of current online marketing trends in the United States, as well as projections for the next few years. Specifically, the report covers Internet usage and penetration, mobile Internet usage, advertising spending, Internet marketing and social media trends. For more information about WSI s digital marketing services, please contact your local WSI Consultant. Copyright 2013 by Research and Management Page 2 WSI Internet Marketing Trends Report 2013

3 Internet Usage US Internet User Penetration Growing Modestly Internet user growth is gradual and steady, as typical of a mature market According to emarketer estimate, the number of users rose by 3.1% in 2012 to become 239 million In 2016, an estimated 262 million residents will access the web at least once a month Mobile Web Usage Rising More Dramatically than Internet In 2012 more than half (50.2%) of the US mobile population accessed the web using a mobile device emarketer estimates that by 2016, nearly 200 million people will go online via the mobile This will consist of more than 60% of the total population Marketers expect this to change the existing digital advertising dynamics in the US market Copyright 2013 by Research and Management Page 3

4 Internet Usage Americans Spend 24.8% of their Average Day Online While television continues to retain top slot in popular media channels, the Internet is fast catching up An average American spent 39.8% of his time watching TV and 24.8% online Radio and print are also popular; Americans spent 13.2% of their time listening to the radio and 5.4% on reading newspapers and magazines Demographic Profile of US Internet Users Female web user form a bigger number with the male and female ratio at 48% to 52% Web usage correlated strongly with affluence; 32% of the respondents came from households earning $100,000 or more US Internet users are evenly distributed between all age groups Copyright 2013 by Research and Management Page 4

5 Internet Usage Content-Related Actions of US Internet Users In a survey by Harris Interactive, 45% of respondents from all age groups, both male and female said that they would click on articles or videos relevant to them while browsing the net 39% check links to relevant content at least once a week; 36% were attracted to visuals and were likely to click on stories that had visual appeal Only 8% of the respondents mentioned that they do not read online content Daily Online Activities of US Social Network Users Almost 80% or more number of social networkers in the US of all age groups used daily Over 70% of males and females between years logged into social networks daily 45-70% of social networkers used the Internet for news, weather information and entertainment Checking sport scores, stock markets and reviewing calendars appointments are other popular online activities of social networkers in the US Copyright 2013 by Research and Management Page 5

6 Mobile Internet Mobile Phone Connections Keep Increasing From 311 million mobile owners in 2010, the number has grown to million in 2012 The number will keep growing through the next few years at a pace faster than that of the Internet According to emarketer estimates million American will own a mobile by 2016 Demographic Profile of US Mobile Internet Users A slightly higher percentage of men use the mobile as an Internet access device as compared to women Affluence and web usage through mobile seems interconnected with 31% of mobile Internet usage falling in the high-income group of $100,000 per annum Mobile Internet is more popular among the younger generation with 43% of users between 18 and 24 years Copyright 2013 by Research and Management Page 6

7 Advertising Spend Ad Spending on Digital Far Outpaces All Other Media Channels Share of ad spending on television has remained stable from Digital advertising including mobile advertising is growing at a phenomenal rate; advertisers are increasingly diverting budgets towards these newer media Print media will see budgets slipping downwards from 20.7% in 2012 to 16.6% in 2016 US Mobile Ad Spends Takes Huge Leap Ad spend on mobile advertising in 2010 was almost non-existent By the end of 2012 the scenario had changed drastically with mobile ad spend jumping to $2.61 billion in 2012 By 2016 mobile ad spending will become the giant with spend projected at $11.87 billion Copyright 2013 by Research and Management Page 7 WSI DigitalMarketing Trends Report 2013

8 Internet Advertising US Digital Ad Spending to See Double Digit Growth US digital ad spending climbed from $31.99 billion in 2011 to $37.31 billion in 2012 Double-digit growth will continue through 2013 and 2014 By 2016, ad spend will reach $55.25 billion, accounting for 29.2% of the total media spending in the US Retail Players to Lead in US Digital Ad Spending US retailers will spend $9.48 billion in digital advertising in 2013; by 2016 the figure will grow to $12.16 billion Financial services ($5.27), telecom($ 4.84) and automotive ($5.01 billion) will be other significant players Strong growth in spending across verticals reflect that marketers in all industries are beefing up their spend on online and mobile advertising Copyright 2013 by Research and Management Page 8

9 Display Advertising Gap Between Display and Search Advertising Closing Display ad spending will rise from 40.2% of total digital ad spending in 2012 to 45.6% of the total in 2016 Search s share of total digital advertising will decrease from 47.1% in 2012 to 44.2% in 2016 Combined spending on paid search and display advertising will account for more than 88% of all US spending in 2013 Videos, Rich Media and Sponsorships Attract US Marketers The growth in display advertising is driven primarily by digital video advertising and sponsorships At a 46.5% growth rate in 2012, digital video will continue to post the strongest gains Sponsorship ad spending continues to attract advertisers and projected a high growth rate Popularity of rich media is also increasing with marketers viewing them as extremely effective for mobile platforms Copyright 2013 by Research and Management Page 9

10 Online Videos Growth of Digital Video Ad Spending in the US Audience for online video content is increasing steadily through 2012 to 2016 emarketer predicts that by 2014, million, that is nearly threequarters of the US Internet population will watch videos online at least once a months In 2016, this number will grow to million people, that is almost 80% of total Internet users in the US Online Video Viewing Frequency According to a AYTM Market Research report, 50.5% of Internet users said that watched online videos a few times per week A considerable chunk of this population (27.5%) watched online videos daily 23.3% viewed them several times a week Copyright 2013 by Research and Management Page 10

11 Online Videos Online Video Spending Gaining Popularity Across Industries Consumer Packaged Goods (CPG) and Health/Pharma companies are spending the most on online video ads, allocating 25% and 23% of their budgets for the same Players in the entertainment industry spend 12% of total ad budgets, placing it at 3 rd place Auto and retail are upcoming buyers of online video advertising Digital Video Viewer Share by Age At 18.9%, the largest share of a million digital video viewers in 2013 will be ages According to emarketer estimate, approximately 50% of the viewers through 2013 to 2016 will be between ages25-54 The largest growth among viewers will increase in double-digit numbers among the oldest and youngest viewers Copyright 2013 by Research and Management Page 11

12 Social Media Facebook Remains Social Network Giant, Twitter Catching Up Currently, ad revenue from Twitter, LinkedIn and Social Games will be a fraction of Facebook s 65.6% ad revenue share in 2013 In 2014, however, Facebook share will decrease to 63.5% as the other sites grow their revenue streams Out of all social networks, Twitter will experience the steepest growth According to emarketer, LinkedIn s revenues are also exceeding beyond market expectations Social Network Advertising to Continue Posting Gains US social network ad revenues, comprising earnings from ads placed on social networking sites, social apps and social games will reach $3.14 billion in 2013 By 2014, social network ad revenues will climb to more than $5billion By 2014, 10.5% of total digital ad spending in the US will come from social networks Copyright 2013 by Research and Management Page 12

13 Social Media All Social Media Format Reflects Growth in Ad Spend Facebook s ad-buying platform continues to support high level of spending; growth rate will remain same at 24.4% in 2013 as the previous year Between 2012 and 2014, Twitter s US ad revenue will climb from $259 million to $638 million emarketer expects LinkedIn advertising revenue to reach $236.3 million in 2013 and grow to $307.8 million in 2014 More Than Half of US Facebook Users Connect with Brands/Businesses on the Site According to a AYTM Market Research survey, 65% of Facebook users connected with businesses or brands onsite As many as 35.6% of Facebook users in the US connected with several brands/businesses on FB 29.4% of respondents said that they connected with 1 or 2 brands/businesses Copyright 2013 by Research and Management Page 13

14 ABOUT WSI WSI leads the global Internet industry offering best in class digital marketing solutions to suit the needs of multiple industries. The company has the world s largest Internet Consultants network spanning across 80 countries with its head office in Toronto, Canada. WSI Consultants have helped thousands of businesses realize their online marketing potential. By using innovative Internet technologies and advanced digital marketing strategies, businesses can have a WSI Digital Marketing Plan tailored to their individual needs to elevate their Internet presence and profitability to new levels. With the support and cooperation of its customers, franchise network, employees, suppliers and charitable organizations, WSI aims to help make child poverty history through its global outreach program (www.makechildpovertyhistory.org). For more information about WSI s offerings and business opportunities, please visit our website at The information herein is the property of Research and Management Corporate (RAM). Each WSI franchise office is an independently owned and operated business RAM. All rights reserved.

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