Skip to main content

Online Marketers Maintain a Competitive Advantage


According to the latest study by eMarketer, the online advertising market showed its resistance to the economic recession. While total media spending dropped, marketer's online ad spending increased by 2 percent to $55.2 billion.

eMarketer forecasts that 2010 will bring a return to double-digit online ad growth -- with global spending set to reach $61.8 billion. Growth will continue at rates of over 10 percent each year through 2014.

"By 2014 eMarketer forecasts that figure will leap to $96.8 billion, growing at an 11.9 percent compound annual rate, despite the slow, uneven and fragile global economic recovery," said eMarketer's Jared Jenks. "These rates will be unmatched by other media."

North America and Western Europe accounted for nearly three-quarters of the world's online ad spending in 2009, but those mature online ad markets will post slower growth rates than developing areas in Asia-Pacific, Eastern Europe and Latin America.

In terms of dollars, however, the more developed regions will still increase by many billions because of their large established bases and still largely untapped potential of the Internet.

The Internet's share of total ad spending worldwide will jump from 11.9 percent in 2009 to 17.2 percent in 2014. Continued high growth in the online space coupled with a 2009 spending decrease of 10.5 percent for total media, followed by a slower recovery, will help online get an ever-larger slice of the ad spending pie.

"The reasons for this growth in share are clear," said Jenks. "Online is more measureable, more effective and where people are increasingly spending their time."

Marketers who have moved quickly to shift their budget allocation from traditional media to online have gained a significant competitive advantage over their laggard peer group. However, it's not clear how long it will take the marketing mainstream to catch-up to the more progressive early-adopters.

Popular posts from this blog

Mobile Data Traffic to Triple by 2030

As new app demand grows, we're witnessing a surge in mobile data traffic.  This trend, driven by the proliferation of bandwidth-intensive services such as video streaming, augmented reality (AR), virtual reality (VR), and next-generation cloud applications, is reshaping the telecommunications industry. According to the latest market study by ABI Research, global mobile data traffic is set to triple by 2030, challenging network operators to keep pace with this escalating demand and evolving user expectations. Mobile Data Market Development The exponential growth in mobile data usage is a function of more devices being connected -- it also reflects fundamental shifts in how mobile subscribers and enterprises use technology. The ubiquity of smartphones, the rise of the Internet of Things (IoT), and the adoption of immersive digital experiences are all contributing to this surge in mobile data. Mobile network operators now find themselves at the center of a data-driven economy, where t...