Future Ad Spend Trends

Posted on 7/2/2008 by Jim Pickerell | Printable Version | Comments (0)

According to ZenithOptimedia, 2008 ad spending worldwide is expected to reach $453.6 billion with 40% ($183.5 billion) in North America and 25% ($113.5 billion) in Western Europe. These figures are down from an estimated $486 billion at the end of 2007.

Advertising spending on the Internet will increase 26% in 2008, overtaking radio, and is expected to be more than 10% of the market. By 2010, Internet ad spend is predicted to reach $61 billion, slightly ahead of the $60.5 billion magazine ad segment of the market.

"We've always predicted very strong growth'" for the Internet, Jonathan Barnard, Zenith's head of publications, said. "But it is constantly surprising us. The main surprise is that Internet advertising is so strong in developed markets (North American and Western Europe) even as traditional media is weakening.'"

The latest study found that there is accelerating pressure on traditional Western ad companies to shift from print to Internet ads. The single largest Internet ad market, in money terms, is the U.S., but digital advertising's share of overall media spend is relatively low. Digital ad spend is expected to experience the most rapid growth in Western Europe, where revenue will go from almost $20 billion this year to approximately $40 billion in 2010.

At the recent Cannes International Advertising Festival, Rupert Murdoch told the assembled audience that 50% of Dow Jones revenues are from "digital" and predicted 75% digital in a few years.

Overall, 2008 advertising growth worldwide will be 6.6% above 2007, but in the rest-of-the-world segment of the market (35% of the total), growth is expected to be 11.8% compared to 2007.  Worldwide ad spending is expected to rise more than earlier forecasts as faster growth in Russia and other emerging markets makes up for a slowdown in North America and Western Europe.

Also at the Cannes, advertising and media leaders complained about what Google, Yahoo and digital search is doing to their business. Brand advertising, the traditional bread-and-butter for print and television media, is facing a slowdown as spending shifts to online.

Looking ahead two years, global ad spend for 2010 is estimated to be $530 billion. Developing markets are expected to contribute 62% of ad spend growth between 2007-2010, increasing their share of the global ad market from 27% to 33%.

Copyright © 2008 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


Be the first to comment below.

Post Comment

Please log in or create an account to post comments.

Stay Connected

Sign up to receive email notification when new stories are posted.

Follow Us

Free Stuff

Stock Photo Pricing: The Future
In the last two years I have written a lot about stock photo pricing and its downward slide. If you have time over the holidays you may want to review some of these stories as you plan your strategy ...
Read More
Future Of Stock Photography
If you’re a photographer that counts on the licensing of stock images to provide a portion of your annual income the following are a few stories you should read. In the past decade stock photography ...
Read More
Blockchain Stories
The opening session at this year’s CEPIC Congress in Berlin on May 30, 2018 is entitled “Can Blockchain be applied to the Photo Industry?” For those who would like to know more about the existing blo...
Read More
2017 Stories Worth Reviewing
The following are links to some 2017 and early 2018 stories that might be worth reviewing as we move into the new year.
Read More
Stories Related To Stock Photo Pricing
The following are links to stories that deal with stock photo pricing trends. Probably the biggest problem the industry has faced in recent years has been the steady decline in prices for the use of ...
Read More
Stock Photo Prices: The Future
This story is FREE. Feel free to pass it along to anyone interested in licensing their work as stock photography. On October 23rd at the DMLA 2017 Conference in New York there will be a panel discuss...
Read More
Important Stock Photo Industry Issues
Here are links to recent stories that deal with three major issues for the stock photo industry – Revenue Growth Potential, Setting Bottom Line On Pricing and Future Production Sources.
Read More
Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More

More from Free Stuff