Online Advertising – The Ad Industry Saviour?
Online advertising seems to be the way forward for companies as uncertainty increases. In the UK for instance, it grew by 21% year-on-year during the first half of 2008, according to IAB U.K. and PricewaterhouseCoopers. The total U.K. internet spend reached almost £1.7 billion ($3 billion) in H1, representing a 19% overall market share. Without this growth in online, the total U.K. advertising market would have fallen by 4.6%, instead of the 0.7% that it actually fell by.
ZenithOptimedia too, has revised it’s prediction of advertising growth this year downwards from the 6.6% it had anticipated in June to 4.3% It also slashed its 2009 estimates, from 6% growth to 4%. However, internet advertising is expected to increase its share of the world ad market from 8.6% last year to 13.8% in 2010. That’s up slightly from the 13.6% Zenith predicted the Web would command back in June.
In actual numbers, global Internet ad spend will hit $51.1 billion this year, 61.7 billion in 2009, and $75.8 billion in 2010, according to the report. That’s down from ZenithOptimedia’s June prediction of $52.2 billion this year, $64.1 billion in 2009, and $78.2 billion in 2010.
This should not be surprising given the kind of tracking and targeting that the web allows. I expect the biggest losers would be newspapers and other print publications.
However, I doubt if publishers would have it all that easy – in an effort to get the most of their marketing spend, advertisers are no doubt going to veer towards Cost-per-action or Cost-per-lead deals.
Expect social media advertising/ promotions to be the new buzzwords.
Related posts:
- ROI Drives Online Advertising Growth In Europe
- Recession? Boom Time For Online Advertising
- Online advertising – driving advertising spend
- Is The Growth Of The Indian SEM Industry Slowing Down?
- Online Advertising Spend Set To Overtake Radio
Filed under: Business, Statistics
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