Analysts are predicting that even Google’s revenues will actually decline 2 percent from last year and will be down 13 percent from last quarter. So it’s surprising that Zenith Optimedia while deciding to slash its forecast on overall advertising this year, 6.9 percent to $453.2 billion, while U.S. ad outlays will drop 8.7 percent to $156.9 billion, is also expecting online advertising to grow globally to 8.6 percent.
“The last two quarters have been eye opening in terms of the reduction in spending,” Tim Jones, chief executive of Zenith’s North American operations, told the WSJ. “Many (marketers) are treating advertising as a discretionary expense, and one they find convenient to cut.”
But not in online. While most of the growth is coming from search, which is expected to be up 9 percent in the U.S, Zenith says that online classified in the U.S is expected to grow 1.8 percent. Traditional display will shrink 1.8 percent. Double-digit gains are just around the corner, ZenithOptimedia says, up to 11.3 percent in 2010 and 15.3 percent in 2011.