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Online Ad Spend Predictions Slashed

Written on: Dec 8, 2008
Author: Kathleen |
: Share; Online Ad Spend Predictions Slashed

ADOTAS – Industry watchdogs are slashing their online advertising forecasts for next year, but stress that the interactive industry is still in much better shape than the advertising business overall.

WPP’s GroupM predicts 5% online ad spend growth next year (down from 16% growth in ’08).

Publicis’ ZenithOptimedia Group has a sunnier forecast, with predictions that online ads will grow 18% in 2009. “We still expect Internet advertising to grow by 18% in 2009, including 18% growth in North America and 12% in Western Europe,” ZenithOptimedia reported. “We forecast the Internet to take a 15.6% share of global ad expenditure in 2011, 5.2 percentage points ahead of magazines and 5.6 points behind newspapers, having narrowed the gap from 15.1 points in 2008.”

Magna Global has also slashed his forecast for this year, predicting an 8% rise in online ad spend, down from his previous 12% prediction. Magna added that growth next year will likely weigh in at around 5%.

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