LONDON: In its latest quarterly report published Monday, Publicis-owned global media network ZenithOptimedia predicts that internet adspend worldwide will grow 28.2% in 2007, while the rest of the market grows 3.9%.
The rise and rise of the internet has been dramatic. It has taken just eleven years to overtake two long-established media: cinema (which it overtook in 1997) and outdoor (which it overtook this year), and by 2009 it will be larger than radio.
There is still plenty of potential for growth in internet adspend. Internet penetration is peaking at about 70% in the most mature markets, but is only 17% worldwide.
Even in the developed markets, the internet receives a much lower share of ad budgets than is apparenttly warranted by the amount of time consumers devote to it.
In 2005 consumers in the USA, Japan and the UK (the top three ad markets) spent 21.9% of their media time using the internet, yet advertisers in these three markets spent only 6.8% of their budgets online - a consumption-to-spending ratio of more than 3:1.
ZO expects the internet to take nearly 9% of global adspend by 2009, but experience from the most developed markets suggests it is heading for well over 10%.
The internet already attracts more than 10% of adspend in three markets (Norway, Sweden and the UK), and by 2009 the agency expects it to do so in another seven markets (Australia, Canada, Israel, Japan, South Korea, Taiwan and the USA).
The web enjoys its highest share of the world advertising pie in the UK, where it will attract 13.5% of adspend this year and 21.5% in 2009.
Further details of the ZenithOptimedia report can be accessed by clicking here.
Data sourced from ZenithOptimedia; additional content by WARC staff