Advertising and access fees are going to push spending on the internet to $78.4 billion by 2011, up from $47.2 billion in 2006, a 10.7 percent average annual growth rate, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook.
Over the next five years, PwC predicts in its annual forecast, broadband households will grow by 300 million to 540 million subscribers and wireless subscribers will increase by 1.1 billion to 3.4 billion. Global advertising will increase at a 5.4 percent annual rate, rising to $531 billion in 2011 from $407 billion in 2006. Online advertising will experience the largest growth, with a projected 18.3 percent annual rate to $73 billion in 2011. By 2011, online advertising will comprise 14 percent of the global ad market. Other highlights from the report:
— The U.S. has the world’s largest online ad market, which is projected to grow to $35.4 billion by 2011. But by 2009, China is expected overtake the U.S. in terms of the number of internet users.
— EMEA, the second largest market, will expand at a 5.5 percent annual rate to reach $617 billion in 2011.
— Asia Pacific will remain the fastest-growing region through 2011, with double digit increases in online, TV distribution and video games. Spending in Asia Pacific will average 9.6 percent annual growth, the fastest of any region, increasing from $297 billion in 2006 to $470 billion in 2011. In terms of individual countries, India’s growth will accelerate the most during the next five years at a rate of 18.5 percent while China will continue to record double-digit annual gains that will average 16.8 percent every year. Release
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