International online ad growth rates are forecast to reach 35% and 24% in FY06 and FY07, according to a new report from Merrill Lynch, which outpaces the company’s current US growth estimates of 29% and 22% respectively.
The report comprises an international bottoms-up forecast of online advertising by major countries, compiled with the collaboration of Merrill Lynch’s media counterparts in Europe, Japan, China, Brazil, and Australia.
Merrill Lynch said that combined international branded and search is expected to finish the year strongly at a 41% growth rate and is expected to grow 28% in FY07.
The financial services company also said that Google, with the leading share in the UK (roughly 70%), should be well positioned to capture growth from high-growth European markets such as France and Spain. In addition, checks with European SEMs indicate that Google is likely to maintain its dominant share position over the next 12 months as Microsoft’s search index and technology continues to trail Google and Yahoo! monetisation improvements are not expected to have an impact until the middle of 2007. Merrill Lynch also says that Asia is a potential source of growth for Google, although revenue contribution remains limited. It expects Google to gain international ad revenue share to 36% in 2007 from 31% in 2006.
A recent study from JupiterResearch forecast that online ad spend will reach $15.7 billion in the US this year and $25.9 billion by 2011 (see Online Adspend To Reach $25.9 Billion By 2011).
Related Links
