Online ad spending hits double digits, but not here: ZenithOptimedia

Is ad spending on digital poised to overtake a traditional media category?

Online ad spending, for the first time anywhere in the world, will hit a double digit share in at least two countries this year (Sweden and the UK), according to ZenithOptimedia’s projections in its October 2006 forecast. Australia, Israel, Japan, Norway, South Korea and Taiwan will join the list by 2008. For this year, however, advertisers spent about 5.7% globally on reaching markets through the Internet. That stat should rise to 7.3% on a global scale by 2008.

The report predicts that online spending by advertisers will see 84% growth between 2005 and 2008. This year’s growth will see Internet ad spending overtake outdoor, which is pegged at 5.5%. By 2008, the media agency predicts the Internet will be hot on the heels of radio, which will fall from 8.4% this year to a flat 8% in 2008. Magazine spending will also decline in this time period to about 12.7%, down from13% this year. The October report shows television spending staying steady at 37.7% for 2006 and 2007, nudging up slightly to 37.9% in 2008. Newspapers drop from 29.2% in 2006 to 28 per cent in 2008.