US online adspend will reach $61.98 billion, surpassing newspapers to become the leading US ad medium in 2011, according to a new forecast from Veronis Suhler Stevenson (VSS).
The
21st Communications Industry Forecast says that the consumer migration to digital media has spawned a year on year decline in the amount of time consumers spent with media.
The VSS forecast also says that consumers spent an average of 1,631 hours in 2006 with consumer-supported media, such as the internet and video games- a gain of 19.8% compared to 2001.
James Rutherford, executive vice president and managing director at VSS, said: “”We expect these shifts to continue over the next five years.
“As time and place-shifting accelerate while consumers and businesses utilize more digital media alternatives, strengthening the new media pull model at the expense of the traditional media push model.”
Total US communications spending for 2006 increased 6.8% to a record $885.2 billion and the compound annual growth rate (CAGR) of 5.9% from 2001 to 2006 outpaced the nominal GDP, according to the VSS report.
The VSS report forecasts growth of 25.79% for ad spending on traditional media-based internet sites, whilst US National internet advertising, which includes search, display and sponsorships, is forecast to reach $38.897 billion in 2011, representing an 18.2% CAGR from 2006-2011.
A recent forecast from Forrester Research predicted that spending on online marketing in Europe will double in the next five years, from around €7.5 billion in 2006 to more than €16 billion in 2012 (see Online Adspend Set To Double).
eMarketer forecast that Britain is set to account for over half of all online ad spending in Western Europe in 2007, rising to a 52.6% market share in 2010 (see UK To Spend £2.6 Billion On Online Advertising In 2007).
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