New Delhi: While the credit squeeze is dampening economic growth around the world, the same does not hold true for the advertising market. The global media service provider ZenithOptimedia has forecast global expenditure on advertising to grow from 5.3% in 2007 to 6.7% in 2008.
Internet is pitched to double its share of global adspend between 2006 and 2010 and this according to industry analysts will be at the expense of most other media.
Given present trends, while all media adspend is growing, it is the Internet along with cinema and outdoor advertising that is likely to gain sizeably with the stepped up advertising budgets of manufacturers, retailers and corporates.
According to the report, Internet advertising will be worth $36 billion (Rs1,42,040 crore) this year, which is $5 billion more than what was predicted in December 2006. It is likely to grow by 24% in 2008 and 69% over the next three years, to reach an estimated $61 billion by the year 2010.
Fast-growing countries are seeing rapid growth in new forms of advertising. Here, adspends are growing from a very low base. Russia’s ad market is likewise relatively new, but this growth is far from coming from a low base. Russia is currently the 14th-largest ad market in the world, and it is expected to rise to sixth position by 2010 which is when China too is likely to overtake Germany to become the fourth-largest ad market in the world.
However, the share for traditional media, which will grow, albeit at a slower pace, is expected to be in the region of 5-14% over the same corresponding period.
* Internet advertising to overtake radio advertising in 2008
* Internet advertising to attain double-digit share of global ad market in 2009
* Touted as the fast growing media, Internet will overtake magazine advertising by 2010
* Internet adspends will acquire 11.5% of total adspends by 2010
* Internet has already garnered a share of 15% of total adspend in countries like Denmark, Norway, Sweden and the UK
* The medium is tipped to have an ad share of more than 20% in the same four markets and more than 15% of adspend in 10 other markets