| medialifemagazine.com New media
It seems like just yesterday that the internet was still a tiny player in global advertising, a phenomenon unique to the developed nations. That’s certainly changing. What’s surprising is the pace of that change. The latest forecast: From just 2.8 percent in 2002, the internet will soar to just shy of 14 percent of all global advertising expenditures by 2011. That’s according to PricewaterhouseCoopers and its Global Entertainment and Media Outlook 2007-2011. And just how big is 14 percent? It will place the internet ahead of radio, out of home and even magazines in its share of the total global advertising budget. Driving it all is the wider adoption of broadband, which allows users to do so much more online. “Online advertising is growing explosively in each region, fueled by rising broadband penetration and the growing use of the internet for social networking and as an entertainment and media center,” says the report. “Continued growth in broadband subscribers and increasingly fast broadband speeds will fuel internet advertising.” In 2006 alone, global internet ad spending soared by 37.9 percent, to $31.6 billion, according to PwC. And from 2007 to 2011, PwC expects internet ad spending will then more than double, to $73.1 billion, for an annualized growth of 18.3 percent. As this happens, other media will see their shares decline, some dramatically. TV will suffer only a slight falloff, dipping from 37.7 percent to 37.1 percent, but newspapers will drop from 28.5 to 25.0 percent over the five-year period. Magazines will fall from 13 percent to 12 percent and radio from 7.9 percent to 7.3 percent. The only gainer, aside from the internet, whose share will rise 7.7 percent in 2006 to 13.8 percent in 2011, will be out of home, which will nudge up to 6.0 percent from 5.7 percent. The PwC report breaks the world into five regions. Of these the U.S. has the biggest online advertising market, and its internet ad spending is expected to grow 16.1 percent a year on average over the period, to $35.4 billion. Yet that growth will begin to slow in the final years of the forecast, dropping into the single digits, after eight consecutive years of double digit growth. And overall it will see the slowest growth. The EMEA region--Europe, Middle East and Africa, and the next largest market—is forecast to grow 21.5 percent per year on average, making it among the fastest growing. Within the EMEA region, Western Europe accounts for 95 percent of internet ad spending, and the fastest-growing country is expected to be Russia, which PwC expects to grow at an average annual growth rate of 47.5 percent through 2011, to $699 million in internet ad spending. That would boost Russia from ninth to fifth in size within the region. Japan is forecast to grow at a pace of 16.4 percent a year on average, reaching $7.0 billion by 2011. The internet ad market in Latin America remains small and largely dominated by Brazil. But with broadband adoption now on the upswing, forecasters see the pace of growth picking up, and they expect ad spending to pace at 19.0 percent a year on average in the region. Meanwhile, in online ratings for the week ended June 10, the top five parent companies were Microsoft, Google, Yahoo, Time Warner and News Corp. Online for the 20th straight week. The top five brands were Google, Yahoo, MSN/Windows Live, AOL Media Network and Microsoft for the ninth straight week. NexTag Inc. was the top advertiser with 4.56 million impressions, followed by No. 2 Low Rate Source at 4.29 million. With 27.02 million ads served, Yahoo was again the top advertising site, more than quadrupling No. 2 MSN at 5.0 million. Sessions per person per week were even to last week at 16, with domains visited per person also even at 38. Average PC time per person per week was essentially even at 16 hours and 38 minutes.
Top 25 brands
Parent
Unique Audience (000)
Reach %
Time spent per person (hh:mm:ss)
1
Google
73,047
53.6
0:23:48
2
Yahoo!
73,027
53.6
1:05:30
3
MSN/Windows Live
64,460
47.3
0:36:23
4
AOL Media Network
56,415
41.4
1:43:01
5
Microsoft
52,540
38.6
0:14:14
6
Fox Interactive Media
36,880
27.1
0:59:20
7
eBay
28,609
21.0
0:46:18
8
YouTube
22,885
16.8
0:23:19
9
Amazon
19,321
14.2
0:10:36
10
Weather Channel
18,551
13.6
0:22:13
11
Wikipedia
18,359
13.5
0:09:38
12
Apple
18,064
13.3
0:20:18
13
Real Network
17,975
13.2
0:19:31
14
Ask Search Network
15,439
11.3
0:13:05
15
CNN Digital Network
12,526
9.2
0:17:56
16
Bank of America
12,460
9.1
0:24:29
17
About.com
11,889
8.7
0:03:21
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