Online Video, Local Search Drive 30% Internet Ad Growth: ZenithOptimedia by Laurie Petersen

ONLINE VIDEO AND LOCAL SEARCH will drive a 30% growth in worldwide Internet ad spending to $33.72 billion this year, according to the latest forecast from ZenithOptimedia, which was released on Monday.

“We have revised our forecasts for Internet advertising upwards yet again,” the Publicis-owned global media agency reported. “We now forecast 29.9% growth this year (up from 28.6% three months ago) and 85% growth between 2006 and 2009 (up from 82%). Online video and local search are the new, fast-growing segments, but display, classified and the rest of search are still growing rapidly as well.

“We now expect Internet advertising to account for 9.5% of all expenditure in 2009, fractionally up from the 9.4% we forecast three months ago,” the forecast adds.

Newspaper share is expected to decline from a 29% share of world ad spending in 2006 to 26.2% in 2009.

The forecast is just the latest in a series predicting continued robust growth of interactive ad spending.

Global Advertising Expenditure US$ million, current prices

(Currency conversion at 2006 average rates)

2005 2006 2007 2008 2009
Internet 19,235 25,952 33,723 41,638 48,139
Total 399,431 426,447 448,403 477,863 504,557

Source: ZenithOptimedia

Share of Total Ad Spend By Medium 2005-2009 (%)

2005 2006 2007 2008 2009
Newspapers 29.7 29.0 27.8 26.9 26.2
Magazines 13.2 12.8 12.5 12.2 12.1
Television 37.8 37.9 37.9 38.2 38.1
Radio 8.6 8.3 8.1 7.9 7.8
Cinema 0.4 0.4 0.4 0.4 0.5
Outdoor 5.5 5.6 5.7 5.8 5.9
Internet 4.8 6.1 7.5 8.7 9.5

Source: ZenithOptimedia

Morgan Cushey

Content Writer at Higher Images Inc
Morgan Cushey writes SEO articles for clients who want to enhance their online authority and see their Google Rankings rise. She has written entertaining and informative SEO-focused articles across a wide range of industries, from dentistry and landscaping to tourism and pest control, giving her a comprehensive knowledge on a variety of subjects. Morgan has a Bachelor of Arts Degree in Journalism with a minor in political science from California University of Pennsylvania. She has been a lifelong writer and has extensive experience in many styles of writing, from SEO-focused articles and PR to non-fiction and feature news articles written for local newspapers. Morgan lives in Monongahela, PA, with her fiancé Aaron, where she spends her free time reading or snuggling with her two dogs, Biscuit and Ellie.

October 2, 2007
By: Morgan Cushey