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Magna: Global Online Ad Spend Will Surpass $100 Billion In Five Years

While online ad spending has been looking a lot more healthy lately, Magna Global’s latest report that things will look even brighter by 2015. Thanks to the growing presence of millions of businesses, along with billions of consumers who are driving hundreds of billions of e-commerce activity, will propel global online advertising up 12.4 percent to $61 billion dollars globally this year, said Magna research director Brian Wieser in a report. Although there could be some rough patches in the intervening years, over the next five by the time 2015 rolls around, Wieser said the online ad space will top $100 billion.

It’s a given that paid search will continue to dominate the online ad space, making life difficult for publishers who have been hoping that the upswing in display spending could bring a close return to the models of traditional media and replace print and broadcast losses. Search spend will hit $29.8 billion this year, which is a 16.5 percent gain over 2009. While these kinds of figures usually mean more good news for Google (NSDQ: GOOG), the search leader, the fastest growth in search spend over the next few years will be happening in Russia and China, places that Google has either been a small player or has decided to pull back from.

All other online spending this year will add up to $31.2 billion, an 8.7 percent rise over ’09. “Other online advertising is much
more diffused, Wieser noted. In addition to a few global portals, such as Yahoo (NSDQ: YHOO) and Microsoft (NSDQ: MSFT), and many regionally strong publishers, which tend to be tied to more lucrative print pubs, have soaked up that ad spend.

Over the past three years, social networks like Facebook have served as the main challenger to the portals, which have seen users and ad dollars decline for a second year in a row, a recent Razorfish report pointed out.

The dynamic between portals and social nets gets mentioned a lot in discussions of where ad spending is headed. One thing that doesn’t is where the brand dollars are being spent, and that provides a good deal of hope to traditional publishers and the portals. “While advertising is becoming increasingly important for social networks