ZenithOptimedia, a media services agency, recently modified its estimate of the portion of the global ad spend that would be held by the Internet by 2008. In April the agency estimated that the Internet would make up 6.5% of global ad spend by 2008, but that figure is now increased to 7.0%. The Internet is the fastest growing medium in this regard.
Part of the reason for this more optimistic forecast is the “pace of development in Internet advertising,” according to ZenithOptimedia.
If this estimate is realized, Internet ad spend will have increased 76% from 2005 to 2008. In 2005, online ad spend was $18.5 billion. That number is expected to be $23.9 billion this year, $28.6 billion in 2007, and $32.5 billion in 2008.
The two main catalysts for this growth are telecommunications and financial firms. Combined, the two segments increased online ad spend by $1.7 billion from 2001 to 2005, making up 17% of the growth in the total spending on the medium during that span of time.
Earlier estimates foresaw the Internet to garner more dollars than outdoor advertising next year, but that shift seems likely to happen by the end of this year.
The adjusted estimates also expect global ad spend to grow 6.1% this year to $406.5 billion, which is a small increase from April’s estimate of 6.0%.
Global ad spend in all media is forecast to grow by 5.3% next year, and 5.6% in 2008. The past decade saw an average growth rate of 5.0%.
The report released by ZenithOptimedia indicates that “the current regime of steady ad growth will be sustainable for several years to come.”
Sources:
http://www.btobonline.com/article.cms?articleId=28561
http://www.clickz.com/news/article.php/3618951
Network
