By on October 4, 2007

30% Increase in Online Advertising in 2008

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As I noted in a previous post, forecasts say holiday spending will be down, except online. The US housing market is affecting advertising spend too. But again, online advertising is the bright spot. This is according to ZenithOptimedia. They downgraded its 2007 forecast for offline advertising which was already in the single digits. Online advertising is projected to rise 30% in 2008.

The upside is TV advertising sales globally should be at a record high next year because of the Olympic Games in China. You can see how markets outside the US are still growing, especially Central & Eastern Europe and the Middle East.

Here are some other findings:

  • The drop in ad prices isn’t a freefall, but it has been downgraded to 2.5 percent growth in 2007. It was estimated to 3.3 percent, before the housing market woes.
  • Most of the online advertising growth will be in video and local search. They say these will drove 30 percent growth in internet ad expenditures in 2007 – which is nine times faster than the rest of the ad market.
  • The coming years will be even stronger for internet advertising. The report says that between 2006 and 2009, there will be an 85 percent increase.

It is still amazing that television advertising is still increasing and at record levels, even with free online content. The growth isn’t happening in the US though. In fact, the US is losing market share.

I can’t forget the sad plight of newspapers. Rather than video killing the radio star, it’s the online classifieds and news killing the newspaper. A 29% drop with another 6.2% drop for 2009 estimated.

Not to end on a down note, here’s some good news for one form of traditional advertising. Outdoor advertising is still growing, thanks to technology. The digital displays are working well as their market share is forecast to increase from 5.6 percent in 2006 to 5.9 percent in 2009. Read more at MarketingCharts.


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11 comments on “30% Increase in Online Advertising in 2008”

  1. WordHugger Says:

    October 4th, 2007 at 3:59 pm

    Rising 30% in 2008, you can only imagine how big it will be in 2011.

  2. Allen Taylor Says:

    October 4th, 2007 at 5:58 pm

    All, hail, the power of local search!

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    October 4th, 2007 at 8:41 pm

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  5. » Local Online Advertising To Grow in 2007 Local Advertising Journal Says:

    October 5th, 2007 at 9:15 am

    [...] (Source) Most of the online advertising growth will be in video and local search. They say these will drove 30 percent growth in internet ad expenditures in 2007 – which is nine times faster than the rest of the ad market. [...]

  6. links for 2007-10-05 | The Marketing Technology Blog Says:

    October 5th, 2007 at 11:23 am

    [...] 30% Increase in Online Advertising in 2008 As I noted in a previous post, forecasts say holiday spending will be down, except online. The US housing market is affecting advertising spend too. But again, online advertising is the bright spot. This is according to ZenithOptimedia. (tags: onlineadvertising 2008 statistics) [...]

  7. money maker Says:

    October 5th, 2007 at 11:11 pm

    i think its great news for both advertisers & publisher. bloggers need to optimize this and i reckon i’ll be seeing for banner ads spots eh MP eh?

  8. jessica Says:

    October 7th, 2007 at 4:50 pm

    Excellent, now how can we all grab a piece of it?

  9. Rainforest Crunch Coffee Break - October 9, 2007 Says:

    October 9th, 2007 at 7:06 am

    [...] 30% Increase in Online Advertising – Janet Meiners @ Marketing Pilgrim [...]

  10. Leeds Says:

    November 21st, 2008 at 2:50 am

    And what is the amount spent in billions on advertising…. ?

  11. Car Wallpapers Says:

    January 4th, 2009 at 2:55 pm

    I think it will go more than 30% increase in 2008. The amount will not be in billions, it will be in trillions, as some big fishes are already making billions, like google, yahoo, msn.