Internet advertising spending is set to soar in 2005, increasing at a double-digit pace to bring the total to more than twice the level of 2003.
ZenithOptimedia’s soon to be released global forecast, claims UK internet advertising spending will reach £615 million next year, up 11% from £552 million this year. This figure is more than double that of 2003 and more than 14 times the amount spent on internet advertising in 1999.
According to a report in the Financial Times today, ZenithOptimedia says the increase in spending reflects the evolution of internet advertising. The focus for advertisers has shifted away from pop-up and banner advertising towards ‘search’ marketing, where advertisers pay to get their products and services to appear in the search results produced by search engines such as Google.
While internet advertising accounts for around 5% of total advertising spend, it is the fastest growing category. In its September forecasts, the Advertising Association predicted an increase of just over 30% for the internet in 2005(see AA Downscales Its 2005 Ad Expenditure Forecast).
ZenithOptimedia predicts this growth rate will be sustainable over the coming years, with internet advertising spending growing by 12.9% to £695 million in 2006 and by 10.1% to £765 million in 2007.
Earlier this month, the Internet Advertising Bureau and PriceWaterhouseCoopers released figures that put online advertising spend ahead of radio by Christmas this year (see Online Adspend To Overtake Radio By Christmas).
