Online Ad Spend to Continue Growth Through 2010

  |  December 4, 2007   |  Comments

In three years, ZenithOptimedia predicts, online ads will comprise 11.5 percent of the total global ad spend

An ad spend forecast released yesterday by ZenithOptimedia expects online ad spending to surpass magazine advertising in 2010. That's one of three major milestones for online advertising in the three-year forecast.

In 2008 online is expected to overtake radio advertising in terms of spending, a prediction included in an earlier forecast. The following year online advertising's share of the total global ad spend is expected to reach a double-digit share of 11.5 percent, and then 15 percent in 2010.

"Looking globally, the Internet still has a lot of room to grow," said Jonathan Barnard, head of publications at ZenithOptimedia. "Formats like Internet video are still quite unexploited." Barnard said one bottleneck for online advertising is available talent.

Globally, the degree of online ad spending can vary. Barnard said the online ad spend in China already equals 8 percent of the total spend, and expects it to reach 15 percent (about $3.7 billion) in 2010. While China may be considered aggressive in terms of Internet advertising, the top four markets in the category are Denmark, Norway, Sweden, and the U.K. where online will likely exceed 20 percent of total spending in three years.

Recent ad spending reports warn of slower growth in both online and overall spending, though the ZenithOptimedia forecast expects to see an increase in inventory from Internet startups.

ZenithOptimedia, in the study, recognizes that some fear the new generation of dot-com companies will trigger a bubble, much like the one that hit earlier this decade.

This time, ZenithOptimedia said, it will play differently for the ad market. Last time around, companies spent their funding on advertising instead of building business. The new breed of start-ups have based their business models on selling advertising rather than buying it.

"Instead of raising money in order to advertise, they're raising money to capture Internet revenue," said Barnard.

"We don't yet know what ventures will work best, and what ventures will capture the attention of other people." An example, Barnard offered, "Nobody saw Google coming, nobody saw Facebook coming. The most successful ventures have been the ones to come up with a use for the Internet nobody's thought about before."

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...