Internet to overtake newspapers ad spend in 2009

by David Allott, Media Week 30-Jun-08, 09:05

LONDON - The internet will become the UK's single largest advertising medium next year, overtaking both TV and newspapers, according to the latest ad spend forecast from ZenithOptimedia.

Internet ad spend is projected to grow by 32.3% this year and 28.2% next, to reach £4,055m in 2009. The next biggest medium, newspapers, is only valued at £3,950m in 2009.

The UK will overtake Germany to become the world's third largest ad market by 2010, according to the research.

The figures, from Zenith's quarterly global advertising expenditure forecast, predict UK advertising revenues to increase by 22.8% over the three years to 2010, compared to 13% for Western Europe and 20% for the world overall.

The survey predicts that online advertising in developed markets will break through the 10% barrier, as economic uncertainty forces advertisers to shift spend into more accountable media.

The low cost of producing online ads, coupled with the ability to measure return on investment and their highly targeted nature, means advertisers will continue to switch spend away from more traditional media, particularly newspapers.

The report identifies faster access to content and the fact that classified advertising works better online, as major reasons behind the move away from newspapers.

The report also identifies developing markets as key contributors to global ad spend growth over the next three years. Predicted growth of more than 75% in markets such as Brazil and Russia will see them enter the top ten, at 6th and 7th respectively, for the first time, displacing developed markets Spain and Australia.