Online ads will grow while print drops
Ad spending will grow by nearly 5% this year and will continue to grow annually between 4.6% and 5.2% over the next three years, according to projections released Monday from ZenithOptimedia.Internet advertising will grow three times as fast as the whole market between 2010 and 2013, helped by online video and social media. Magazines and newspapers will continue to struggle, falling by 2% over the next three years, according to ZenithOptimedia whose projections kicked off the UBS Global Media Communications Conference on Monday in New York. “The key result of this update is the continued rise of developing markets and digital media, and their central role in driving global growth,” said Steve King, ZenithOptimedia CEO. “In fact the importance of the Internet is underrepresented in these figures. Advertisers are investing a lot more in owned and earned media, where their activities do not count as ad expenditure in the traditional sense.” Despite gloom and doom predictions about tv, advertising on the small screen will continue to pick up market share, rising from 40.7% this year to 41.8% in 2013. “Bigger and higher-quality displays, more channels delivered by digital television, and the convenience of PVRs mean people are watching more television than ever,” Zenith said in its report. Globally, Brazil and China will grow 31% and 51% respectively, and that next year China will surpass Germany as the world’s third largest ad market, behind the U.S. an Japan.