Fred Aun recently posted an article on ClickZ, showcasing a recent forecast by Interpublic Group’s Magna Media Services. According to Magna, although total spending on Internet and mobile advertising is expected to decline three percent in 2009 from 2008, substantial growth can be expected for the near future - 5 to 10 years.
According to Brian Wieser, director of forecasting for Magna, $22.8 billion will have been spent on online and mobile advertising by the end of 2009. While this signals a slight decline decline in yearly terms, the future looks optimistic; Wieser predicts a 7.7 percent total increase for 2010 with ad spending to reach an estimated 24.6 billion. According to this article, Wieser also predicts that by the end of 2014, spending will reach a robust $35 billion, which represents a growth rate of 8.9 percent, compounded annually.
According to Magna's study, expenditures on advertising,"…industry [all advertising] revenues will fall from $47.5 billion in the fourth quarter of 2008 to $43.2 billion during the fourth quarter of 2009." But compared to the estimated revenue declines of 13 percent during the third quarter and 18 percent for the first and second quarters of the year, this represents a, “…moderating pace of decline.” In the midst of the decline, it was reported that paid search and online video grew quickly in the first half of this year - a trend that is expected to continue in the next several years. Aun again cites Wieser, who stated: "Search advertising caused an expansion of the market, making it possible for millions of small- and medium-sized enterprises to do what we call advertising."
The Magna report also found that direct online advertising, which raked in $13.5 billion last year, grew 2.5 percent this year totaling $13.8 billion and is expected to reach $15.4 billion next year. Local digital advertising revenue this year will see around $3.4 billion, an 11 percent decrease from 2008; it will likely increase to an estimated $3.5 billion in 2010. The forecast report also predicted that national digital ad revenue will reach $5.5 billion, 9.8 percent less than in 2008, and will see a mild increase next year as it sees $5.6 billion. According to Wieser, the rapid recovery time for many types of advertising will actually benefit display, which may have fared worse in the recession. He argues it enable advertisers and brands to purchase display at more competitive rates.
Via Fred Aun @ ClickZ
Comments
Comments are closed.