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Search Marketing Expenditures Drive up Global Ad Dollars




With half the year behind us, ZenithOptimedia has revised their 2010 global ad forecasts from a 1.5% decrease to a 1.3% increase in North America. The change is due to a surprising increase in consumer spending and confidence despite rampant unemployment and most of the change is coming from the online sector.

Newspapers and magazine are both expected to continue their downward spiral, while radio, outdoor and cinema remain fairly flat. Television is on the rise again after a downturn in 2009 but it’s Internet that’s galloping along at a brisk pace.

Looking at internet advertising by type, paid search leads the way and by 2012, the figure is expected to nearly double what was being spent in 2008. Display advertising dropped slightly last year, but is expected to rise again in the near future.

The fastest growing sector is social media and mobile advertising.  Says Television Business Reports:

“Between 2009 and 2012, ZO forecasts mobile advertising to grow by an average of 43.2% a year, while social media advertising grows by 30.2% a year, compared to 15.6% a year for the internet as a whole. The two formats overlap to an extent, since many consumers use their mobile devices to access their social profiles, and mobile social networking will become more and more important to advertisers over the coming years.”

adspending

In terms of actual ad dollars, online advertising has passed magazine advertising but still has a ways to go to catch newspapers and TV. With newspaper rapidly folding and others experimenting with online models, it appears that internet advertising will catch up with them in the near future. As for television, maybe now that Lost has gone off the air, we’ll have a chance of wooing some of those ad buyers away from the networks and on to our weekly webisodes.

  • http://unica.com/products/on-demand-search-marketing.htm Akin Arikan

    Wow! With this much money pouring into paid search (“paid search leads the way and by 2012, the figure is expected to nearly double what was being spent in 2008″) companies will be well advised to take a good look at managing this budget more tightly.

    For companies without internal PPC marketers that means hiring expert agencies or hiring staff to bring the function inhouse. For companies that already have PPC staff it means giving them better tools to manage the budget, i.e. Search Bid Management. And for multi-national enterprises it means keeping a central (HQ) eye on everything that is being spent on PPC across global branches and local agencies. That requires things such as central dashboards, global enforcement of bidding rules, support for global search engines (e.g. BAIDU), currency translations, etc.

    Thank you for sharing the latest news!

    Akin
    Unica

  • http://www.awebguy.com Mark Aaron Murnahan

    It stuns me that newspapers still enjoy as much revenue as they do. The numbers I have heard from some clients as to their spending is about as painful as pulling teeth. It gives me all the more reason to have dreams about choking people when they continue to waste money on things that do not work, but are skeptical about online marketing.

    I have a hard time imagining how a print advertising rep answers to the targeting, measurement, and longevity capabilities of online marketing. Reaching back in time to what I once knew of print ad reps, I just picture dumpy old men as buyers and sexy young sales reps. I have seen it in sitcoms, and in real life, but I thought that would have died with the Archie Bunker generation. I guess not.

  • http://www.divyeshweb.com/ Divyesh Shah

    it’s seems to be the fastest media….figures are appealing….most of them are trying to target their audience online….generating more traffic…