Publicis’ ZenithOptimedia Group, issued a forecast today saying that they expect Internet ad spending will expand 10.1% in 2009.
The agency projects Internet ad spending will rise to $56.8 billion this year, or 12.6% of the global advertising economy.
That means the Internet will pick up more than two points of worldwide advertising share, this year, and its momentum is only expected to accelerate.
The report further predicts that Internet advertising “By 2011 we expect it to account for 15.1% of all ad expenditures, up from 10.5% in 2008,”
“Most of this growth will come from paid search. In the U.S., we predict search advertising to grow 20.0% in 2009.”
ZenithOptimedia attributed some of the surge in the U.S. search advertising marketplace to the launch of Microsoft’s new Bing search engine, which is creating “welcome competition to Google and should spur further innovation in search.”
The group also predicted that spending in all other media will decline this year.
ZenithOptimedia forecasts TV, cinema and outdoor will decline by less than the market as a whole, shrinking by 7.1%, 4.8% and 7.0% respectively.
“Some advertisers, particularly in the fast-moving consumer goods sector, are taking advantage of cheap television and increasing their volumes, targeting higher market share. Cinema often does relatively well in a recession, providing consumers with escapist entertainment. Digital billboards and other non-traditional forms of outdoor are attracting budgets from other media by offering new types of eye-catching display.”
Newspapers, meanwhile, peaked in 2007 at $131 billion worldwide, and has fallen ever since.
“We predict newspaper ad expenditure to shrink 14.7% in 2009 and to continue shrinking for the rest of our forecast period. In 2011 we forecast newspaper ad expenditure will total US$101 billion, 22.7% below its 2007 peaks.”
“Magazines face an even tougher time this year as luxury advertisers cut back severely: we forecast a 16.7% decline in magazine advertising in 2009. But their long-term prospects are brighter than those of newspapers, since the experience of reading a magazine is less easy to replicate on the internet. We predict that magazine advertising will return to 1.5% growth in 2011, reaching US$46 billion, 22.4% below its own 2007 peak.””
Okay…..but will we ever see any of that 20% increase passed on to us? It sure has not trended that way yet.
I’m sure hope Bing.com will force G or Y to pay more for our traffic.
What might also happen here soon is that Google/Yahoo lay down the law and finally eliminate all/most of the TM traffic. I assume that the sudden lack of ad inventory will cause the rest of the great generics to start paying out a whole lot more.
Imagine what would happen with the combination of 20% more money flowing into the channel in 2009, with Bing.com bringing more competition for our traffic, and the sudden elimination of TM traffic. It would be good times again for domainers that have clean portfolios.
am i the only one that has never heard of these people ?
Johnny, your domain traffic is finally being priced at where its worth. Lower than search traffic. Get used to it.
PPC is nice except most of us are on PSPC (pay “shit” per click) programs
This can only be explained by arbitrage and double dipping (ads for parking company-owned sites) if your report is true
Owen
Just to be clear, its not my report, I’m just reporting on it.
Until domainers have a choice other than Google and Yahoo, they will continue to pay us less because they can.
If we keep sending the same traffic we sent to them for $1 for $.30 soon they will be paying $.20
Zenith has 3000 + employees which means their number are as good as any other research firm. All they do is take past data and forecast the future based on past historical numbers, if the prediction does not happen they blame it on a “unforeseeable economic landscape” or some BS like this.
Domainers don’t hold your breath for LOVE from MSFT.
Off topic, but does anyone know if Tucows/OpenSRS sells any of their domains on an individual basis?
Ed
Yes Tucows does under YummyNames.com
Thanks MHB
@FX…….. if you really believe that that you know almost nothing about generic domains.
MHB, it is true that Paid Search Campaigns will soon become the forefront of all digital media marketing. I feel that PPC and paid search in general will replace currend advertising mediums.