Tuesday, October 2

Online Video, Local Search Drive 30% Internet Ad Growth: ZenithOptimedia

ONLINE VIDEO AND LOCAL SEARCH will drive a 30% growth in worldwide
Internet ad spending to $33.72 billion this year, according to the
latest forecast from ZenithOptimedia, which was released on Monday.

"We have revised our forecasts for Internet advertising upwards yet
again," the Publicis-owned global media agency reported. "We now
forecast 29.9% growth this year (up from 28.6% three months ago) and
85% growth between 2006 and 2009 (up from 82%). Online video and local
search are the new, fast-growing segments, but display, classified and
the rest of search are still growing rapidly as well.

"We now expect Internet advertising to account for 9.5% of all
expenditure in 2009, fractionally up from the 9.4% we forecast three
months ago," the forecast adds.

Newspaper share is expected to decline from a 29% share of world ad
spending in 2006 to 26.2% in 2009.

The forecast is just the latest in a series predicting continued
robust growth of interactive ad spending.

Global Advertising Expenditure US$ million, current prices

(Currency conversion at 2006 average rates)

2005 2006 2007 2008 2009
Internet 19,235 25,952 33,723 41,638 48,139
Total 399,431 426,447 448,403 477,863 504,557

Source: ZenithOptimedia

Share of Total Ad Spend By Medium 2005-2009 (%)

2005 2006 2007 2008 2009
Newspapers 29.7 29.0 27.8 26.9 26.2
Magazines 13.2 12.8 12.5 12.2 12.1
Television 37.8 37.9 37.9 38.2 38.1
Radio 8.6 8.3 8.1 7.9 7.8
Cinema 0.4 0.4 0.4 0.4 0.5
Outdoor 5.5 5.6 5.7 5.8 5.9
Internet 4.8 6.1 7.5 8.7 9.5

Source: ZenithOptimedia

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