Click here...

BREAKING NEWS & VIEWS

Magna: Online Advertising to Reach $100B in 2015
Tuesday, June 8, 2010
Steve Smith

An unusually optimistic forecast for digital advertising growth comes from Magna Global this week. The research division of IPG’s Mediabrands says that on a global basis online advertising will grow 12.4% this year to $61 billion. Search continues to be the leading format attracting marketers to the digital platform, and this performance-based media will enjoy 16.5% growth in 2009. According to head analyst Brian Wieser, non-search advertising will grow more slowly at 8.7% to $31.2 billion. “Other online advertising is more diffused, with a handful of portals, such as Yahoo and Microsoft, and many regionally strong publishers (often associated with print publications) capturing most of that sector’s revenue,” he says in the report.

Wieser also says that online ad networks will continue to thrive because they do provide advertisers with efficient reach mechanisms. Social media, while growing strongly relative to its small ad revenue, continues to attract far fewer ad dollars than eyeballs and hang times.

Magna cautions that onine ad spend is no longer tied to the growth of the Internet population nor to time spent online. “Indeed, increased time may be correlated with decline in some areas,” the report argues. “For example: news production is commoditized and its economics are weakened by the ready availability of wire service content; Craigslist has contributed to the decimation of the classified industry… .” The key drivers for growth in online ad spend will be the sheer numbers of businesses coming online, the increased competitiveness among advertisers, and the increased presence of major consumer brands online. “These factors establish a very deep foundation for online advertising,” the report states.

Wieser says he expects the trends to continue, with online ad spend growing 11.7% in 2011 and on average 11% through 2015. The online ad expansion will also be region-specific. Latin America will show the strongest growth, up 13.3% annually through 2015.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

COMMENTS

min's Sales Executive of the Year Awards
Call for Entries

Click here...

min Press

min's Mobile App Report

View Details

Intriguing & Top-Selling Magazine Covers

View Details

The State of Digital Media

View Details

Internet Sales Guidebook

View Details

All min Press

Events Calendar

min's Best of the Web Awards
Event April 3, 2012 at the Grand Hyatt, NYC
Register Today!

min Webinar:
Tablets 2.0: Generating a Revenue Plan for the Tablets Platform
December 8, 2011 1:30-3:00 p.m.
Available on Demand

All Events

Copyright © 2012 Access Intelligence, LLC. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Access Intelligence, LLC is prohibited. For more details please see Terms and Conditions.