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Online to enjoy sharp growth in 2007
Online advertising is set for a massive increase in growth next year, according to data published by ZenithOptimedia.The research firm estimates that internet ad spend around the globe will grow by more than a quarter (28.2 per cent), while that in other media sectors will grow by just 3.9 per cent.
This means that online advertisers can look forward to the medium growing seven times more quickly than traditional formats such as TV, as more and more consumers take to the internet and join the online business and shopping revolutions.
The study also predicts that internet ads will overtake outdoor advertising this year and radio in 2009.
"There is still plenty of potential for growth in internet ad spend," the report's authors conclude. "Internet penetration is peaking at about 70 per cent in most mature markets, but is only 17 per cent worldwide."
They also highlighted a discrepancy in the amount of time consumers devote to the internet and the money spent by advertisers in this area. In the world's three biggest internet markets – the US, Japan and the UK – the ratio is more than 3:1, indicating the potential for growth.
Meanwhile, the International Herald Tribune notes that online advertising in the UK is racing ahead of that in the US, where the marketing landscape is somewhat different.
Local markets in the US have meant the sector has lagged behind the UK, where online is growing at a 40 per cent yearly rate.
Online Advertising news posted on 04 December 2006
