Global Advertising to Shrink, Online Marketing to Grow

Interesting forecast data (on global advertising vs interactive marketing) has been published a few days ago by Forrester Research and ZenithOptimedia.

Here is my summary:

  • Global advertising market is expected to decline 8.5% this year (North America – 10.3%)
  • Overall advertising budgets will decline as well
  • In 2009 newspaper ad spend will drop 14.7%, magazines – 16.7%, TV – 7.1%, outdoor – 7%
  • Interactive marketing, on the other hand, is expected to grow
  • In 2009 Internet ad spending will grow 10% globally
  • By 2011 Internet spending is expected to account for 15% of all ad outlays
  • By 2014 digital marketing spend will hit nearly $55 billion
  • Search marketing share will continue to be around 60% mark
  • Social media marketing share to grow from 2.8% to 5.7%
  • Social media marketing spend will grow most (more than fourfold)

All of this is good news both for advertisers, and for us, online marketers. As Shar VanBoskirk of Forrester has pointed out “with dollars moving out of traditional media toward less expensive and more efficient interactive tools, marketers will actually need less money to accomplish their current advertising goals.”

For further details see the July 2009 ZenithOptimedia Adspend Forecast [PDF file here], as well as the Forrester’s Five Year Forecast [PDF for sale here] and Shar’s blog post on Forrester.com.

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