The company said the internet advertising spend would grow six times faster than traditional media between 2006 and the end of 2009 and increase its share of the advertising market from 5.8 per cent to 8.7 per cent.
Online advertising is expected to account for more than 10 per cent of total advertising spending on all media in Australia in 2009.
Global adspend on all media will grow 5.2 per cent in 2007, matching long term trends, though it will grow faster in 2008 as a result of the Olympics and elections.
ZenithOptimedia predicts that internet adspend will grow 28.2 per cent in 2007, while the rest of the market will grow at 3.7 per cent.
While the internet would account for about 9 per cent of global adspend in 2009, it would reach double digits early next decade.
“The internet already attracts more than 10 per cent of adspend in three markets – Norway, Sweden and the UK – and by 2009 we expect it to do so in eleven markets (including Australia, Canada, Japan, South Korea and the United States),” the ZenithOptimedia report said.
The UK leads the world in online advertising, where 16.6 per cent of total advertising spend is now on the internet.
The report downgrades its previous forecasts for newspapers and magazines as publishers – eyeing the growth rates of internet advertising – have decided to invest more in their online products and less in print.
“Ad expenditure is still growing in (newspaper and magazines), in nominal terms at least, but after adjusting for inflation newspaper expenditure is essentially stagnant, as readers and advertisers migrate to the internet,” the report said.
Ad expenditure in Asia Pacific is accelerating in the run-up to the Beijing Olympics in 2008, when growth should reach 7.7 per cent. We then expect growth to slip to 4.9 per cent in 2009 when the one-off Olympics activity drops out.
For more e-Marketing news, click here.
