Tuesday, June 8, 2010

Magna: Online Advertising to Reach $100B in 2015

An unusually optimistic forecast for digital advertising growth comes from Magna Global this week. The research division of IPG’s Mediabrands says that on a global basis online advertising will grow 12.4% this year to $61 billion. Search continues to be the leading format attracting marketers to the digital platform, and this performance-based media will enjoy 16.5% growth in 2009. According to head analyst Brian Wieser, non-search advertising will grow more slowly at 8.7% to $31.2 billion. “Other online advertising is more diffused, with a handful of portals, such as Yahoo and Microsoft, and many regionally strong publishers (often associated with print publications) capturing most of that sector’s revenue,” he says in the report.

Wieser also says that online ad networks will continue to thrive because they do provide advertisers with efficient reach mechanisms. Social media, while growing strongly relative to its small ad revenue, continues to attract far fewer ad dollars than eyeballs and hang times.

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