The internet is forecast to become just as strong an advertising medium, if not stronger, than television, with a new report from Borrell Associates claiming the internet looks set to become a significant local as well as national advertising medium that will reach a par with TV, newspapers and direct mail advertising shares.
According to Borrell, internet advertising has had a compound annual growth rate of 51.4% in its first ten years, while broadcast TV’s growth was 42.7% in its first decade and cable TV 37.3%.
Borrell asserts that TV stations are starting to realise the potential revenue that could be generated by using their websites as not just interactive brochures for their channels, but as an opportunity to generate new advertising revenue for their companies.
The report shows that by the end of 2005, stations increased their online share by two points over the past 12 months, with some achieving as much as 15.5% of all local advertising spend.
Looking towards 2006, Borrell claims that the “future looks bright”, revealing that television websites are budgeting an average 45% growth in online adspend.
In the UK, OPera’s latest Economic and Media Forecast predicts online advertising to continue the strong growth that it has seen recently, reaching £2.3 billion by 2010, up from just £912 million in 2005.
According to OPera’s figures, TV advertising expenditure is expected to hit £3.94 billion in 2010, up from the £3.55 billion forecast for this year (see UK Adspend To Hit £15 Billion By 2010).
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