Internet advertising will reach $64.7 billion next year, accounting for about 15% of global measured advertising spending, according to research from GroupM, the parent company of WPP media agencies Mediaedge:cia and MindShare. Ad spending will increase in both search and mobile, and the continuing ad spending decline in traditional media will increase Web advertising’s increase in share, according to the report.
In the US, digital advertising will account for 17% of total spending in 2010, compared to 15.4% percent this year and 13.9% in 2008, according to the report. The 2010 figure represents an estimated $24.4 billion in digital advertising, a 7% increase over this year.
Asked if the recession was contributing to a growth in online ad spending, Adam Smith, futures director of GroupM, replied, “You bet.”
“People are spending less, and more carefully – so search volumes are up and conversions are down,” he said. “Absolute growth in online revenue is also coming despite straight budget cuts from many large traditional advertisers and despite dime-a-dozen oversupply of eyeballs from many Web sites pressing down on prices advertisers pay for online display space.”