Blog Post

ZenithOptimedia Revises Online Ad Spend Forecast Up Again; Spending To Rise Nearly 30 Percent

Online video and local search will drive the nearly 30 percent growth in global internet ad spending for 2007, nine times faster than the rest of the ad market, according to ZenithOptimedia’s latest market forecast. In an emailed press release, the Publicis Groupe media agency has revised its spending forecast for internet advertising upwards yet again: it now predicts a 29.9 percent gain over 2006, up from 28.6 percent three months ago, and 85 percent growth between 2006 and 2009 (up from 82 percent previously). Online video and local search are the new, fast-growing segments, but Zenith notes that display, classified and the rest of search are still expanding. Looking ahead to 2009, Zenith expects online ad spending will make up 9.5 percent of all ad expenditures, slightly up from the 9.4 percent the company forecast three months ago.

Zenith’s report also noted that there is still plenty of potential for growth in store for internet ad spending globally. Internet penetration is peaking at about 70 percent in the most mature markets, but is only 17 percent worldwide. Looking at newspapers, Zenith said the category is expected to grow about 3 percent worldwide. And while the report did not look specifically at newspapers’ online ad spend, Larisa Svechin, SVP, director-print negotiations, said in an email exchange that the segment continues to grow at a pace of 25 percent.

For the U.S., Zenith anticipates major media ad spending (newspapers, magazines, television, radio, cinema, outdoor, internet) will grow 2,5 percent this year over 2006 (compared to the 5.2 percent increase of 2006 over 2005), while 2008 will rise 4.1 percent over this year. Looking at 2009 versus 2008, Zenith is forecasting a gain of 3 percent.

Update: Taking a separate look at September, the Conference Board reported that online help wanteds added 165,200 ads, a 4 percent rise over August’s figures for a total of 4,270,000 listings. And, in a familiar story afflicting online advertising in general, although the number of job ads remain high, growth is slowing, especially in what the board called “mature” online job regions, primarily in New England and on the west coast.

One Response to “ZenithOptimedia Revises Online Ad Spend Forecast Up Again; Spending To Rise Nearly 30 Percent”