Online ad spend set for 7% increase next year

Online advertising spend is set to climb by more than 7% next year, according to a new internet ad report.

The Marketers’ Internet Ad Barometer forecasts that online ad spend across Europe will buck the downward trend and increase by 7.6% year on year in 2010 despite the ongoing recession.

Online ad spend is also expected to grow more rapidly in 2011, with budgets up by 15% year on year, according to the European Interactive Advertising Association’s report.

The EIAA’s research found that 83% of advertisers said that they had spent more online this year compared to last year, while 94% said they expected the figure to go up again in 2010.

In addition, 33% of respondents – over 500 senior marketing executives with responsibility for advertising budgets – also said they were increasing spending on online video advertising, while 20% said spend on mobile advertising was increasing.

Alison Fennah, executive director of the EIAA, said: “The Marketers’ Internet Ad Barometer findings reveal that online advertising is continuing to thrive and grow due to its flexibility, accountability and ability to offer brands a robust return on investment while the recession impacts overall marketing budgets.

“For this reason, online advertising is further consolidating its position as the medium of choice for marketers across Europe.”

In September, the IAB’s online adspend study showed that online had overtaken TV for the first time to become the UK’s biggest advertising medium, up £82 million in the first six months of 2009 to £1.75 billion.

GroupM recently predicted that this will continue into 2010, not just in the UK and Europe but also across the globe.  Online advertising is expected to account for about 15% ($64.7 billion) of global measured adspend in 2010, up from around 13% this year, according to GroupM.