As audience shifts from mass media to niche content, Parks Associates sees digital media grabbing 10 percent of ad spending.
A new report from analyst firm Parks Associates forecasts across-the-board growth in digital media segments. New categories like in-game advertising and mobile will show the highest gains, according to the study, likely because they're starting from a lower base.
"Advertising in the Digital Age: Challenges and Opportunities," gives a five-year breakdown of digital advertising spending across Internet display, search, rich media, DVR, in-game and mobile advertising. Overall, the firm expects digital media to grab 10 percent of overall ad spending, or $23.5 billion, by 2010. Last year, the company said, digital media captured just 5 percent of ad spending, or $9.45 billion.
The Internet display ad category is expected to grow at a four percent compounded annual growth rate to $2.4 billion by 2010. By contrast, JupiterResearch's much rosier prediction for display ads forecasts $7.2 billion by 2010. During the same period, Parks Associates sees search experiencing a 14 percent compounded annual growth rate to reach $9.7 billion. JupiterResearch's forecast places search at $7.5 billion in revenues in 2010.
The report discusses how media is moving from mass to niche, leaving advertisers to adapt to new content and ad formats. "We believe that advertising over the next five years will go through some changes," said Parks Associates Research Analyst Harry Wang in a Webcast presentation of the report. "For content providers as well as media publishers, they have to provide content in a form that the audience prefers."
Emerging categories like rich media, in-game, and mobile advertising will show the most growth, according to the report. Internet rich-media ads are expected to experience a 31 percent compounded annual growth rate by 2010. The format will bring in an estimated $5.7 billion. In-game advertising will grow by at least 50 percent annually to $432 million. Advertising on a mobile platform is due to reach $2 billion.
Please take the time to participate in ClickZ's short reader survey, which will be live until March 3. To thank you for your participation, ClickZ will make a donation to charity on your behalf for every survey completed. Details of the charities you can nominate are provided at the end of the questionnaire.
What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.