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Double-Digit Growth Again for Online Ad Spend

Digital shows resilience around the world

The economy suffered around the world in 2009, but the online advertising market showed its resistance to the recession. While total media spending dropped, online ad spending increased by 2% to $55.2 billion.

eMarketer forecasts that 2010 will bring a return to double-digit online ad growth, with global spending set to reach $61.8 billion. Growth will continue at rates of over 10% each year through 2014.

“By 2014 eMarketer forecasts that figure will leap to $96.8 billion, growing at an 11.9% compound annual rate, despite the slow, uneven and fragile global economic recovery,” said eMarketer’s Jared Jenks, author of the new report “Worldwide Ad Spending.” “These rates will be unmatched by other media.”

North America and Western Europe accounted for nearly three-quarters of the world’s online ad spending in 2009, but those mature online ad markets will post slower growth rates than developing areas in Asia-Pacific, Eastern Europe and Latin America.

In terms of dollars, however, the more developed regions will still increase by many billions because of their large established bases and still largely untapped potential of the internet.

The internet’s share of total ad spending worldwide will jump from 11.9% in 2009 to 17.2% in 2014. Continued high growth in the online space coupled with a 2009 spending decrease of 10.5% for total media, followed by a slower recovery, will help online get an ever-larger slice of the ad spending pie.

“The reasons for this growth in share are clear,” said Jenks. “Online is more measureable, more effective and where people are increasingly spending their time.”

Check out today’s other article, “Most Businesses Use Social Nets for Hiring.”

The full report, “Worldwide Ad Spending,” also answers these key questions:

  • What is the growth trajectory for online and total media ad spending around the world?
  • What are the factors propelling the market?
  • How do other forecasts stack up against eMarketer’s?

To purchase the report, click here. Total Access clients, log in and view the report now.

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