Global Online Ad Spending To Reach $65.2 Billion in 2008
By Anna Johnson on July 8th, 2008Research company IDC expects global online advertising expenditure to reach $65.2 billion in 2008 and soar past $106 billion in 2011.
According to IDC’s “Digital Marketplace Model and Forecast” report, spending on Internet advertising currently represents 10 percent of total media spending. However, with the research firm predicting 15-20 percent annual growth over the next three years, IDC believes the online share of total spending will increase to 13.6 percent by 2011.
Among other things, IDC’s report predicts that keyword ads will remain the dominant type of Internet advertising from 2007 to 2011, and will continue to capture more than a third of annual online ad spending. Twenty percent of online ad budgets will be devoted to display ads, followed by classified ads with nearly 19 percent of all online ad spending per year.
However, spending in display and classifieds will be pressured by rich media ads, which are expected to grow at a compound annual growth rate of over 50 percent during the 2007-2011 period.
The United States is expected to continue leading the world in online advertising spending (as it does in total advertising spending), being responsible for $45 billion of the worldwide Internet ad spend in 2011.
Meanwhile, the most popular online ad expenditure categories will continue to be adult content, gambling, information, electronics and computing, receiving $5 billion in worldwide ad expenditure over the next three years.
One major take-out for Internet marketers is that the online advertising space is only likely to become MORE competitive… and expensive. On the other hand, if you provide Internet marketing services, you’ll probably find more and more potential clients receptive to your offerings.
