Blog Post

Magna: Online Ads To End 2010 With A 12 Percent Rise

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

In case you weren’t certain that online advertising is back, the latest forecast from Magna Global should drive the point home: when 2010 is over, web ad dollars will hit $25.6 billion up by 12.1 from 2009. With display having come back strong over the past several months, Magna research head Brian Wieser pointed to the continuing growth in e-commerce, which rose during the second quarter by 14 percent from Q209. While search continues to command the most spending, it appears to be losing share.

In a sign that branding budgets have been shifting to online, national internet spending grew 21.4 percent, significantly higher than local, which gained 14.5 percent and 11.4 percent for direct online, which includes paid search, the IPG unit’s research showed.

One of the most interesting dynamics Magna focused on was the stagnation of “direct media.” The category, which serves as an umbrella for online yellow pages and directories, paid search, lead generation, and direct mail, continued to lose its share of the ad pie. Since this category accounts for more than a quarter of all U.S. ad spending, the shift to more expensive branding campaigns is a positive sign for the ad economy in general.

In its research note, Magna says this trend may also signal remaining weakness among the main direct response marketers