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| Worldwide Spending on Internet Advertising Will Soar Past $106 Billion in 2011 Worldwide spending on Internet advertising will total $65.2 billion in 2008, which represents nearly 10% of all ad spending across all media. With IDC's Digital Marketplace Model and Forecast projecting 15-20% annual growth throughout the forecast period, this share will reach 13.6% by 2011 as Internet ad spending grows to $106.6 billion worldwide. "Compared to more mature types of advertising, Internet advertising is growing at a phenomenal rate", said John Gantz, chief research officer at IDC. "But Internet advertising is still relatively new and growing from a much smaller base. By the end of the forecast period, spending for Internet advertising will trail direct mail – the third largest form of advertising – by more than $30 billion, while spending on TV and print ads will each be nearly twice as great as for online ads. The long-term opportunity for Internet advertising can be seen in the disparity between per capita spending. Total advertising revenues equate to more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user." Keyword ads will remain the dominant type of Internet advertising throughout the forecast period, capturing more than a third of annual online ad spending worldwide. Display ads will be the next largest type of Internet advertising, capturing more than 20% of worldwide spending annually through 2011, followed by classified ads with nearly 19% of all online ad spending per year. Spending in both categories will be pressured by rich media ads, which are expected to grow at a compound annual growth rate (CAGR) of more than 50% during the 2007-2011 forecast period. "Marketers already recognize that online advertising must be incorporated into any comprehensive ad strategy. This will continue to drive growth in online ad spending well beyond the forecast period", said Karsten Weide, program director, Digital Media and Entertainment. "However, there is still a lot of experimentation underway within the category as marketers seek the optimal mix of ad types to reach their target audience. This will fuel spending for all types of online ads." Additional highlights from IDC's Digital Marketplace Model and Forecast include the following: - The United States will lead the world in both total advertising spending and online ad spending throughout the forecast period with expenditures of more than $265 billion and $45 billion respectively in 2011. - Central and Eastern Europe (CEE) and the Middle East and Africa (MEA) will experience the fastest growth in Internet ad spending during the forecast period with a CAGR of 42.1% for CEE and 29.8% for MEA. Online advertising in Asia/Pacific (excluding Japan) will also experience dramatic growth with a 2007-2011 CAGR of 25.4%. - Internet advertising will make the greatest gains relative to total ad spending in Western Europe, where online ad spending will capture 18.2% of total ad spending in 2011. This compares to a 16.3% share for online ad spending in Japan and 14.6% in the United States. - More than $5 billion will be spent worldwide in 2008 in each of the top four categories of online ads – adult content and gambling, information, electronics, and computing. These will continue to be the leading categories in 2011. IDC's Digital Marketplace Model and Forecast provides worldwide and regional data for a wide range of Internet categories and activities. Traditional Web 1.0 categories include Internet users, devices using the Internet, Internet buyers, and B2C and B2B eCommerce. Web 2.0 categories look more closely at what Internet users are doing online, with breakouts by activity and gender. The database also includes a detailed look at online advertising spending worldwide. Forecast data for the 2008-2012 period is supplemented by historical data from 2006 and 2007. The Web 1.0 categories include detailed information on more than 40 individual countries. write your comments about the article :: © 2008 Computing News :: home page |