So said the head of one of the biggest media buyers in the world, yesterday at the Media Week going on in NYC…David Verklin, CEO of Carat Americas predicted that the percentage of ad budgets placed in online media would nearly double in the next 36 months, and that most of that shift would come at the expense of TV as marketers move more deeply into two areas of online marketing: search and broadband video advertising and sponsorship.
Based on the numbers he is seeing from Carat’s clients, Verklin estimated that online now accounts for about 8 percent of their ad budget, and given the current rate of increase, would grow to 15 percent “in about 36 months.”
But predictions/estimates go over the specturm: While ZenithOptimedia predicted the rise would send online advertising costs soaring with increased demand from advertisers “tightening the availability of advertising and raising prices,” Aegis’ Verklin indicated that the online ad inventory problem might be a short-term one. He acknowledged that there is currently “inventory pressure” in the fourth quarter, “but you don’t see that pressure in Q1.”
In a related story, the online ad market set to hit at least $55 billion globally by 2010, according to a report by Piper Jaffray analysts Safa Rashtchy and Aaron M. Kessler. The figure, based on a 27 percent compound annual growth rate, is described in the report as “conservative.”
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