Online Ad Spend To Reach 15 In 2010

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Online Ad Spend To Reach 15% In 2010

By: Mike Sachoff
2009-09-25

Online advertising is on track to account for 15 percent of global advertising spending in 2010, up from 13 percent in 2009, according to a new report from GroupM.

In the U.S., digital advertising is expected to account for 17 percent of total spending in 2010 compared to 15.4 percent in 2009 and 13.9 percent in 2008, according to the report. The 2010 figure represents an estimated $24.4 billion in digital advertising, a 7 percent increase over the previous year.

Most of the U.S. growth is driven by search and video, which makes up for declines in Internet display advertising.

"For several years the focus has been on the rapid rise of Google and the implications of its auction based pricing to advertisers and agencies," said Rob Norman, CEO of GroupM Interaction.

"Today, search remains a key driver of digital marketing as advertisers compete to capture a disproportionate share of the intention that search behavior represents."

In terms of spending, global display ad spending is predicted to grow 5 percent to an estimated $20 billion in 2010 while search is on track to show a 12 percent increase representing $25 billion in spending.

Mobile advertising's 2010 global share of ad spending is forecast to reach 6 percent of the total for a 19 percent increase to $3.3 billion from $2.8 billion in 2009. In 2008, mobile ad spending was an estimated $2.4 billion.

As the shift to digital continues, major newspapers and magazines will continue to see declines in audience and, as a result, advertising losses.

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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