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BizReport : Research : June 30, 2008
Online ad spend growing at "phenomenal rate"
Ten percent of all advertising spending across all media will be on online ads according to recent forecasts released by IDC.
Global spending on Internet advertising is forecast to reach $65.2 billion this year. Compared to traditional advertising methods, Internet advertising is growing at a “phenomenal rate”. IDC forecasts that in 2011, online ad spending will reach $106.6 billion, accounting for nearly 14% of the total advertising market.
However, online advertising still represents a relatively small proportion of the overall global advertising spend and trails television, print ads and direct mail by a huge margin.
By 2011 the U.S. will lead the globe in terms of the amount spent on online advertising, but Western Europe will devote the largest portion of their ad budgets on the Internet.
“Marketers already recognize that online advertising must be incorporated into any comprehensive ad strategy. This will continue to drive growth in online ad spending well beyond the forecast period,” said Karsten Weide, program director, Digital Media and Entertainment.
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