Online revenue is outperforming the rest of the advertising market and is set to overtake radio’s share of overall advertising revenue over the next few months.
OPera, the new media investment company for the Omnicom agencies, has predicted that online advertising will be worth £699 million in 2005, a growth of 26.2% compared to this year’s £553m million. According to the agency, the majority of advertisers are now using the medium and the more experienced brands are using it more extensively as broadband enables more sophisticated communication strategies.
Not only this, confidence in the medium is being matched by confidence from the consumer, says the OPera report. As more people shop and pay online, more advertisers are looking to exploit it.
OPera also points towards increasing media fragmentation helping to boost online’s share of advertising revenue and the group is predicting continuing growth in pay-per-perfromance search engine advertising. By 2005, search is forecast to account for half of all online revenues.
This report echoes figures released at the start of the month by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), which shows that online advertising spend looks set to overtake that of radio by Christmas following a period of sustained growth(see Online Adspend To Overtake Radio By Christmas).
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