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BizReport : Research : December 05, 2006

Online Ad Spend Surging As Traditional Growth Slows

A leading advertising forecaster is expecting online ad growth to surge in 2007, despite an expected moderate overall ad spend.

by Kristina Knight

advertising expediture by region
According to ZenithOptimedia, the online advertising growth forecast is about seven times that of traditional advertising mediums. The following was written in a recent quarterly spending report: "Internet ad spend will grow 28.2 percent in 2007, while the rest of the market grows 3.9 percent. . .Apart from the internet, only cinema and outdoor are forecast to grow faster than the market to 2009.”

Paid search is expected to have the largest growth. According to predictions, paid search will account for $14 billion in the 2007 global ad spend. Display advertising is also growing fast. Display ads, including broadband video, is expected to account for $10.5 billion worldwide. Online classified will account for $6.2 billion of the worldwide ad spend next year and “other” media – email, mobile ads, etc. – are expected to bring in approximately $721 million.

The company said (in a statement), "Internet penetration is peaking at about 70% in the most mature markets, but is only 17% worldwide. Even in the developed markets, the Internet receives a much lower share of ad budgets than the amount of time consumers devote to it would suggest it warrants."

Tags: advertising forecast, advertising spending, traditional advertising

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