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Online To Overtake Flat Ad Market, Leading Pack By 2012: Forecast

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Advertising circa 2012 will be a “three-tier market, with online at the top, TV in the middle and traditional media bringing up the rear”, Screen Digest’s latest forecast reckons. Traditional European media channels are expected to see two percent annual growth in ad spend while online sees 20 percent – but there’s no new money: “Rather than increasing overall spending, companies will eat into their traditional media advertising budgets to divert the money to online and digital TV.”

So print, radio and cinema will be hit: “Traditional forms of advertising will suffer as TV audiences fragment and online advertising continues to take a greater share of marketing budgets”. This year will be just fine because of Olympics and Euro 2008 – but there will only be growth of 1.8 percent in Europe and, in 2009, old media will feel the ad pinch, with budgets “flat or in decline”, Screen Digest says. Release.