Alternative Online Advertising to Grow 9%
Online display advertising will be the only online advertising channel to see cutbacks in 2009 and 2010, while all other channels will see major growth, according to the Jack Myers Publishing in a recent forecast.
Online advertising as a whole, including display, search, video and other mediums, will grow 2.9 percent in 2009, according to the Jack Myers Media Business Report. Total spending will be $25.4 billion.
This total figure is expected to grow 2.7 percent in 2010 to $26.1 billion.
Of this total, display advertising accounts for the largest chunk and it is also the only medium expected to see less spending in 2009 and 2010.
Jack Myers Publishing expects display advertising spending to decline 2.0 percent to $11.2 billion in 2009, down from $11.4 billion in 2008.
Display ad spending is expected to decline at an even steeper rate in 2010. The company expects spending in this channel to decline 3.0 percent in 2010, to $10.8 billion.
Online search advertising is the second largest chunk of the total online advertising pie. This medium is expected to grow 7.0 percent in 2009 to $13.0 billion, from $12.2 billion in 2008.
Search ad spending is expected to increase 6.0 percent in 2010 to $13.8 billion, according to Jack Myers Publishing.
Spending on online video, social network, widget and other advertising is expected to increase 8.6 percent in 2009 to $1.2 billion. Dollars spent in this channel are expected to grow 20 percent in 2010, bringing spending to $1.4 billion.
Video game advertising is expected to increase 12.0 percent to $908 million in 2009. In 2010, spending in this channel will grow 12.0 percent to $1.0 billion.
Mobile advertising spending is expected to increase 9.0 percent to $714 million in 2009. Spending in this medium is expected to grow 28.0 percent to $914 million in 2010.
Alternative advertising channels, including online video and social networks, are waiting to burst open once the recession’s presence fades.
“Interactive is clearly outperforming traditional media and will continue into the foreseeable future,” said Jack Myers, media economist at Jack Myers Media Business Research. “But we can’t underestimate the ability of the traditional media companies to use their brand strength to capture their growing strength of the interactive budgets.”
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