Advertising Spending Up 6.7% In 2008; Internet Leads The Way
Zenith Optimedia projects worldwide advertising growth at 6.7 percent next year, but the only category on a long-term growth trajectory is the Internet. In fact, they predict that Internet advertising will overtake radio advertising in 2008 and magazine advertising in 2010. On a national level, most other media categories will remain relatively flat over this time period. The exception is newspapers, which are expected to continue losing appreciable advertising market share during the next three years. Television advertising in the U.S. should be helped next year by the Olympics and the presidential election.
Part of the reason there is such a rush to Web advertising is the fact that usage is way up. According to a newly finished Compete study, the total average time spent online has gone up over 24 percent in the past year alone. Time with other media options has either remained stable or decreased. Other reasons for the increase in Web advertising include more awareness of online advertising tools, the ability to track results, attractive return-on-investments metrics, and the Web’s now vital integration with buying decisions in many categories.