Report: Online Booms as Advertising Overall Slumps
ADOTAS – Advertising in general in the North America and Europe is on the wane, but smart companies will take advantage of the coming boom in developing ad markets and the long-standing boom in online advertising, ZenithOptimedia reports.
In its first forecast of the year, Zenith upgraded its forecast for interactive advertisers, saying it will account for 12.3% of the ad market this year, up from 11.5%.
• Zenith once again substantially increased its forecasts for Internet advertising:
o Internet ad expenditure by 2010 is forecast to reach $67 billion (up from $61 billion in the previous forecast) and account for 12.3% of the ad market (up from 11.5%).
o Online video and local search are now generating substantial new revenues; in the slightly longer term, behavioral targeting on social-networking sites is expected to provide fruitful opportunities to advertisers.
• Some of the Internet’s growth is coming at the expense of newspapers:
o Newspapers are forecast to grow only 4% over the forecast period. After adjusting for inflation, this equates to a 5% decline in expenditure.
o Advertising on newspapers’ websites is included in internet advertising and is helping newspaper publishers claw back some of their lost revenue.
• Cinema and outdoor are the only media apart from the Internet to be gaining market share:
o Cinema is growing rapidly in the US, where it is still quite new, and is benefiting from the spread of digital distribution technology, which is reducing production costs and allows advertisers to run time-sensitive campaigns and target local areas more easily.
o Digital technology is likewise enhancing the value of outdoor to advertisers, as is contractors’ investment in research and improvement of non-digital displays.
Zenith downgraded its combined growth forecasts for North America and Western Europe to 3.8% from 4.4%, blaming the credit crunch and ebbing consumer and business confidence for the slowdown. But Zenith upgraded its forecasts for the rest of the world to 11.1% from 10.9%.
Other key highlights from Zenith’s report:
• Developing market dynamism will maintain global ad growth above 10-year average despite sluggish growth in the developed world.
• Developing markets will contribute 63% of ad expenditure growth between 2007 and 2010, and increase their share of the global ad market from 27% to 33%.
• Asia Pacific will overtake Western Europe in 2010 to become second-largest ad market.
• Internet will account for 9.7% of world ad expenditure this year and 12.3% in 2010
Zenith’s Top 10 contributors to global adspend growth from 2007 to 2010:
Country Growth (US$million) Growth (%)
USA 14, 812 8.3
China 9,242 61.5
Russia 8,248 92.1
U.K. 4,541 19.5
Brazil 4,520 46.6
India 3,163 52.2
Japan 2,347 5.7
South Korea 2,095 21.6
South Africa 2,095 21.6
Pan Arab 1,987 54.2
Reader Comments.
No comments yet
Leave a Comment
Article Sponsor
More News
-
Loading ...
Latest News
- Sponsormob Leads the Way Into RTB for Mobile February 3rd 2012 ADOTAS – For more than half a decade, Berlin-based tech [...] more »
- Weird Study: Mobile Purchasing While in the Bathroom on the Rise February 3rd 2012 DM CONFIDENTIAL - According to 11mark, three-quarters of Americans with mobile [...] more »
- This Week’s New Hires February 3rd 2012 ADOTAS – Another week, another round of new gigs. Here [...] more »
- Two Surveys: What Are We Doing with Mobile Devices During the Super Bowl? February 2nd 2012 ADOTAS - With the Super Bowl fast approaching and the [...] more »
- Facebook Files for IPO, Seeks $5 Billion February 1st 2012 ADOTAS – Well, it finally happened: Facebook filed with the [...] more »
- ToneMedia Targets Customers Based on Music Tastes February 1st 2012 ADOTAS – Today ToneMedia launched its new ad platform, which [...] more »
- Forrester Releases Wave Report on Cross Channel Campaign Management Tools February 1st 2012 ADOTAS – Late yesterday, Forrester Research released its new Wave [...] more »
Features
- Sponsormob Leads the Way Into RTB for Mobile February 3rd 2012
- Video: Social Media Monitoring Comes to “The Future of Engagement” February 3rd 2012
- Facebook’s Timeline: Meant for Brands All Along? February 3rd 2012
- Taking Social Media Analytics to Fashion Week February 3rd 2012
- Going Beyond Click-Throughs to Rope In Consumers: A White Paper Excerpt February 3rd 2012
Spotlight
Sponsormob Leads the Way Into RTB for MobileADOTAS – For more than half a decade, Berlin-based tech firm Sponsormob has remained relevant in an industry characterized by [...] more...
Reader Favorites
Classifieds
- Interactive Project Manager
- Media Buyer
- PHP Software Engineer (Facebook Platform/Social AP
- SEO/Marketing Internship at Green Education Startu
- Site Producer
Recent Comments
- Google’s “Good to Know” May Not Be Good for Me | Money Maker Machine: [...] Permalink [...]
- Jennifer Peterson: I love how your newsletter expands my thoughts. I can always count on your articles
- Google’s “Good to Know” May Not Be Good for Me | Connecticut News | Connecticut Breaking News Headlines | News Directory: [...] Permalink [...]
- Technology: 8 Reasons Why Social Media is Essential for Your Business « Mom it Forward: [...] their social media efforts, there are some real returns that companies report. According to
