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BizReport : Advertising archives : July 09, 2009

Forecast: Online ad spend shows double-digit growth

Consumers may still be pinching pennies, but it appears that more marketers are turning to the Internet to reach them. According to a new quarterly forecast from Publicis ZenithOptimedia Group, online ad spending is expected to increase just over 10% this year. The new forecast revamps a similar forecast from April, when experts predicted the spend would increase by just over 8%.

by Kristina Knight

Why the Internet?

The report cites the transparency and flexibility of the Internet. Marketers like the ability to change campaigns on the fly, the metrics associated with most online advertising methods.

ZenithOptimedia predicts that the online ad spend will reach $56.8 billion by the end of 2009, making up about 12% of the global ad economy. Within two years, online ad spending is expected to account for about 15% of the global ad spend, with much of the growth attributable to paid search marketing.

In the US, paid search is expected to show 20% growth this year but display and classified ads are expected to grow less than 5%.

However the news is not all good. Overall the global advertising spend - online and offline - will decline by more than 8% as advertisers adjust their plans and consumers continue to watch all of their pennies.

Tags: advertising forecast, online advertising, paid search, Publicis, ZenithOptimedia

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