The average share of US consumers’ daily media time spent online has risen from about 10% in 2007 to 15% in 2011, and is expected to grow to 16% this year, according to a new report from GroupM. Consumers spent an estimated 1 hour and 12 minutes out of their total of 8 hours in media time online in 2011. TV (55%) remained the dominant medium by time spent, followed by radio (20%). Data from an April 2012 Time study, though, indicates that digital natives spend the majority (51%) of their media time with digital media, while digital immigrants spend about two-thirds of their media time with non-digital media.
By comparison, December 2011 figures from eMarketer indicate that the internet (excluding mobile) accounted for a much larger 25.9% share of US adults’ daily media time in 2011, with mobile accounting for an additional 10.1% share. Magazines and newspaper combined for 6.8% share of daily media time, with TV dominant at 42.2% and radio at 10.9%.
US Display Spending Up 12%
Data from GroupM’s “Interaction 2012″ indicates that within the US, digital advertising spending represented 22% share of the overall domestic market. Display advertising expenditures rose 12% year-over-year in 2011, from $15.31 billion to an estimated $17.15 billion. Display ad spend is expected to grow another 10% this year to $18.86 billion.
Spending growth in the UK was even higher, at almost 18% year-over-year in 2011 (reaching $1.6 billion), and is slated to rise another 16.3% this year.
Search Growth Rivals Display
US search spend also grew by 12% in 2011, according to the report, from $13.46 billion to an estimated $15.1 billion. Search spending is predicted to grow another 10% this year to $16.6 billion. Growth in the UK was a comparatively muted 10% in 2011, and is forecast at 8.1% this year. An April 2012 report from Adobe found that while US search spend grew 16% year-over-year in Q1 2012, UK growth was limited to 3%.
Other Findings:
- Data from the GroupM report indicates that e-commerce accounts for about 5% of global retail today, while it accounts for 10% of UK retail and the majority of its growth. According to a BCG report from March 2012, online retail is expected to represent 23% of the total UK retail economy in 2016. Other countries where online retail will play an influence include Germany (11.7%) and Australia (8.9%), though the US (7.1%) is predicted to fall below the developed market average (8.5%).
- The GroupM report suggests that average online advertising investment per online user has doubled from 2006-2011 globally. The US had an estimated per-capita online ad investment of $162 in 2011, and is predicted to rise to $174 this year. Meanwhile e-commerce per user stood at $944 in the US, and will top $1000 in 2012.
