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BizReport : Research archives : January 09, 2007

13.4% Growth Expected for Online Ad Spend

New research from TNS Media Intelligence indicates that the advertising industry will see growth overall for 2007, but that growth is expected to be small. The largest ad revenue increases are expected online rather than offline.

by Kristina Knight

tns.gifAccording to the report, advertising in general is expected to grow to about $153.7 billion (a 2.6% increase) in 2007. It is the smallest advertising increase since 2001. The smaller increase is due to the lack of Olympics events and federal elections which usually boost ad revenue in Q3, according to the study.

Steven Fredericks, President and Chief Executive Officer, TNS Media Intelligence said in a statement, “More significant, we expect share of total ad spending will continue to shift away from the Top 100 marketers, as media fragmentation enables more brands with smaller media budgets to participate in the market, while concurrently helping dampen media price inflation.”

However, online display ads are expected to continue double-digit growth in 2007. According to the report, the online ad spend should grow about 13% over 2006 numbers.

Also expected to see growth is syndicated television (6.6% growth), outdoor advertising (5.7% growth), consumer and Sunday magazines (5.5%) and Spanish language media (5.4%). Newspaper advertising is expected to decline about 1% and spot television is expected to decline just over 2%.

Tags: advertising spending, online advertising

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  • I expect more and more companies to understand not only the importance of a strategic online marketing campaign, but also combining it with their traditional advertising initiatives. With an integrated strategy that leverages the strengths of each, businesses are better equipped to test and track each campaign while re-inforcing their brand and sales message across all mediums.

  • Without doubt, online advertising continues to grow at a breakneck pace with the simple differentiation of superior tracking and, ultimately, improved ROI. In the online ad network business (I work at ContextWeb), we're seeing a steady increase of the brand dollars coming online. The impressive reach along with technology, such as contextual, that provides relevant (and brand safe) adjacency seems to be catching on with marketers.



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