Search Marketing Blog
World-wide Online Ad Spending Growth Predicted to Continue
Posted by Sean McMahon on 08.06.2008Online advertising spending world-wide will grow at an annual rate of 15 to 20 percent through 2011, according to the research company IDC in an eMarketer article last month. This annual growth rate would enable total online ad spending to surpass $106 billion in that year.
As depicted in the following chart, the research firm went on to project that online advertising will represent almost 10 percent of the overall advertising industry in the current year, and should increase to 13.6 percent in the next three years.
Here are the macro-economic factors from this article that provide the reasons why IDC expects this continued robust growth in online advertising:
• Online ads are more measurable than other media, making them increasingly appealing to advertisers.
• The Internet audience is huge, so the simple process of advertising following eyeballs will lift spending.
• Internet ad prices are rising, thanks to targeting and other techniques, which can push up overall spending.
The ‘WOW!’ stat from this informative article came in the form of this quote from John Gantz, chief research officer at IDC, “Total advertising revenues equate to more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user.”
I’d say that the online marketing industry has a lot room to grow! Let me know if you perceive that these projections will be achieved in the next three years, or if world-wide economic conditions will result in a deceleration of growth.
