|April 21 , 2009
Report predicts online advertising will dominate
Internet ad expenditures to grow 8.6% in 2009
While global ad spend will decline 6.9 per cent over the course of 2009, internet advertising, which will account for a 12 per cent share of the year’s ad spend, will be the only medium to see growth , according to a report released last week by Zenith Optimedia.
“Consumers are saving money by spending more time at home,” the report states. “As usual in a recession, this means that media consumption is increasing, particularly television and the internet.”
Most internet ad growth will come from search advertising, which the firm predicts will grow 9.0 per cent in 2009. At the same time, classified is expected to grow just 1.8 per cent and traditional display will shrink by 1.8 per cent. New formats are also enjoying greater growth. Dollars spent on internet video and rich media will be up 29.8, internet radio spending will grow 29.7 per cent and investment in podcasts is expected to grow by 11.9 per cent.
The report credits the accountability of internet advertising as well as innovative formats for the increase in ad expenditure although it does point out that the forecasted 8.6 per cent growth in 2009 is actually down considerably from 20.9 per cent in 2008.
“Once a modicum of confidence returns to the market we expect the growth of internet advertising to pick up again, to 11.3 per cent in 2010 and 15.3 per cent in 2001. We expect its share of the ad market to rise to 14.6 per cent in 2011, up from 10.4 per cent in 2008,” the report predicts.