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Online ad spend to bypass newspapers

Posted by Michael Bloch in web marketing (Wednesday December 8, 2010 )

Even more bad news for newspapers is on the horizon, with Internet ad spending expecting to eclipse newsprint’s market share by 2013.

ZenithOptimedia’s Adspend Forecast predicts newspapers and magazines ad spend market share to decline by 2% between 2010 and 2013 as circulations continue to fall and readers increasingly shift to the internet.

It’s not all bad news of course, with many print publications now offering companion sites; although some are finding the transition to the online world anything but smooth, nor anything like the “old world” in terms of selling their wares to a news-hungry public.

ZenithOptimedia says online ad share is still rapidly rising and is expected to grow from 14.0% this year to 17.9% in 2013.

While display ads share of online ad expenditure dropped from 36.2% in 2006 to 33.6% in 2009, internet video and social media helped pick up the slack and in fact will reverse the trend from 33.9% of internet ad spend this year, to 35.0% in 2013.

The world’s biggest online advertising markets currently are the USA, Japan, Germany, China, UK, Brazil, France, Italy, Australia and Canada respectively. Australia in the top 10? Wow.. we’ve come a long way.

In 2013, ZenithOptimedia sees China moving into third place. Australia will be pushed down to number 10 and Canada out of the top 10 altogether due to the rapidly growing Russian market. The biggest growth markets will be Brazil and China with increases of 31% and 51% respectively.

Overall, after the unexpected strong 4.9% recovery this year, ZenithOptimedia predicts annual growth of between 4.6% and 5.2% for the next three years. The company says profitability has rebounded, with many companies having accumulated large reserves of cash to invest for the future.

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