ADOTAS – Interactive media’s share of worldwide ad spend is expected to hit 15% by 2009 – almost double the share it raked in just four years ago. A study from WPP’s GroupM found that interactive media will continue to go gangbusters as traditional media spend shrivels.
Last year, ad spending online, on media and gaming, reached 11% — thanks primarily to ad dollars in the U.S. and Western Europe.
The “Interaction: Addressable, Searchable, Social and Mobile” study finds that Internet advertising has been the principal source of media investment growth in western nations since 2001 as spending in traditional media has leveled off.
Among other key findings of the report:
• Almost 45% of 2007 interactive ad spending counted as display, a figure that is expected to fall slightly. Paid search advertising accounted for 38% and is expected to grow.
• Google commanded a median 86% share of 2007 search inquiries in the survey’s sample of 35 countries, somewhat ahead of other industry samples.
• The mean online shopping spend per user in 2007 was estimated at $471, and the only country to break the $1,000 mark was Denmark.
• The survey also revealed a particularly strong positive correlation between broadband penetration and annual online spend per individual.
• There is also strong positive correlation between the amount of broadband a country has and the internet’s share of advertising investment.
• Demographics alone will sustain growth in internet use among consumers for at least another generation, and possibly two, as those under 25 years old carry their habits into middle age and beyond.
The study covers the use of interactive media in 35 countries.