Publicis’ ZenithOptimedia Group, issued a forecast today saying that they expect Internet ad spending will expand 10.1% in 2009.
The agency projects Internet ad spending will rise to $56.8 billion this year, or 12.6% of the global advertising economy.
That means the Internet will pick up more than two points of worldwide advertising share, this year, and its momentum is only expected to accelerate.
The report further predicts that Internet advertising “By 2011 we expect it to account for 15.1% of all ad expenditures, up from 10.5% in 2008,”
“Most of this growth will come from paid search. In the U.S., we predict search advertising to grow 20.0% in 2009.”
ZenithOptimedia attributed some of the surge in the U.S. search advertising marketplace to the launch of Microsoft’s new Bing search engine, which is creating “welcome competition to Google and should spur further innovation in search.”
The group also predicted that spending in all other media will decline this year.
ZenithOptimedia forecasts TV, cinema and outdoor will decline by less than the market as a whole, shrinking by 7.1%, 4.8% and 7.0% respectively.
“Some advertisers, particularly in the fast-moving consumer goods sector, are taking advantage of cheap television and increasing their volumes, targeting higher market share. Cinema often does relatively well in a recession, providing consumers with escapist entertainment. Digital billboards and other non-traditional forms of outdoor are attracting budgets from other media by offering new types of eye-catching display.”
Newspapers, meanwhile, peaked in 2007 at $131 billion worldwide, and has fallen ever since.
“We predict newspaper ad expenditure to shrink 14.7% in 2009 and to continue shrinking for the rest of our forecast period. In 2011 we forecast newspaper ad expenditure will total US$101 billion, 22.7% below its 2007 peaks.”
“Magazines face an even tougher time this year as luxury advertisers cut back severely: we forecast a 16.7% decline in magazine advertising in 2009. But their long-term prospects are brighter than those of newspapers, since the experience of reading a magazine is less easy to replicate on the internet. We predict that magazine advertising will return to 1.5% growth in 2011, reaching US$46 billion, 22.4% below its own 2007 peak.””