Global online advertising to grow 12.4%

Within this, paid search will be up 12.9% year on year on a constant currency basis in 2010, accounting for $29.8 billion.

All other online advertising is forecast to account for $31.2 billion up by 8.7% on constant currency terms.

According to new figures from the Interactive Advertising Bureau Europe, online advertising growth hit 4.5% in the region last year, significantly less than the 20% growth recorded in 2008.

Magna predicts that current trends will continue over the next five years, with online advertising expected to collectively grow by 11.7% in 2011 and by an average rate of 11% through 2015. At this time the global industry will generate $103 billion dollars in constant dollars.

Latin America is predicted to be the fastest growing region, with $3.5 billion of total supplier advertising revenue in 2015 on an average rate of 13.3% growth over the next five years.

Factors identified by Magna as driving growth include: the rising number of businesses who find online media as essential to achieving their goals; competitive intensity between advertisers within similar brand categories; and the increasing presence of large brands who otherwise prioritise television advertising.

While Magna does not see much short term growth in mobile advertising, the increase in m-commerce and mobile marketing should produce growing volumes of advertising revenues.