Forecast: Online Will Take More Ad Dollars Than Newspapers By 2015

March 23, 2011 - Digital State Marketing

Is the upswing in effect? Three industry forecasts are raising their expectations for next year’s ad spend…

Magna Global is predicting a six-percent rise, GroupM just 0.8 percent, and ZenithOptimedia is raising its cross-media global advertising forecast for the first time in 18 months, projecting a 0.9 percent 2010 uplift (up from the previous 0.5 percent growth forecast), buoyed by ongoing internet growth and a TV ad recovery.

The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.

While those two media will go on attracting more money up to 2012, all others are flat or in decline. Though newspapers now enjoy a 10.9 percent lead over the internet for share of ad dollars, the lead will slim to just 3.8 percent by 2012, when the internet will take 16.2 percent of all spend.

Zenith says: “We expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half-way through the next decade.”

From Zenith’s forecast: “The downturn has accelerated the structural shift of budgets from traditional media to the internet; in a time when marketing departments have to justify every dollar they spend, the rapid and clear returns offered by internet advertising are more attractive than the longer-term brand-building benefits offered by other media.”

It is important that all types of businesses realise the impact that internet marketing can have on their business, and how this will increase in the near future. Many firms now use a search marketing agency that specialise in search engine optimisation to co-ordinate and take care of their online marketing.

The increase in online advertising demonstrates the extent to which our culture now revolves around digital technology. Nevertheless, not everyone is up-to-date on the ins and outs of the algorithms of search engines such as Google, which is why it is crucial for any firm hoping to be a major player in their field to consult a search marketing agency.

We accredit paidContent.org with the inspiration for this article.