Realistically, there's nowhere to go but up for a nascent opportunity such as online video ad spending, so it's not unreasonable to expect the market to continue to grow. That's exactly what ZenithOptimedia predicts in its September advertising expenditures report.
"The Internet is by far the fastest growing medium--we forecast it to grow on average by 15 percent a year between 2011 and 2014," the report said. Of that growth, display advertising will account for the largest chunk of money (36 percent of ad dollars in 2011 and 40 percent by 2014).
"The Internet has risen principally at the expense of print," the report continued, noting that Internet global advertising climbed by 14 points between 2001 and 2011 while newspaper advertising shrank 12 points and magazine advertising declined 5 points.
On the other hand, the report offered up some hope for the traditional print space--or at least its newly found love of the Internet.
"[T]hese figures include only advertising in printed editions of these publications, not on their websites, or in tablet editions or mobile apps, all of which are picked up in our Internet category," the report continued. "The prospects for newspaper and magazine publishers are therefore not quite as bleak as our headline figures would make them appear."
What is not bleak at all is television advertising. While Internet advertising is expected to account for 60 percent of all ad spending growth, plain old television will contribute 41 percent, the report said, noting that the two add up to more than 100 percent because "newspapers and magazines are subtracting from total growth."
People are watching more television and "the biggest television events are attracting record audiences," the report continued. This was evidenced, the researchers said, by the "record Olympic audiences and heavier than expected political advertising in the U.S.," which should propel North American growth in 2013.
Overall, the report said, things are somewhat rosy.
"Advertisers are broadly continuing to invest, despite the global economic concerns and issues… The U.S. continues to deliver solid growth," Steve King, Global CEO for ZenithOptimedia Group, said in the report.
For more:
- ZenithOptimedia released this report
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