Interactive media’s share of worldwide advertising expenditures is expected to hit 15% in 2009, almost double from four years ago, and will remain the main source of growth as ad spending in traditional media continues to decline, finds a study from WPP‘s GroupM.
Ad spending in interactive media – internet, mobile and gaming – reached 11% in 2007, sparked mostly by gains recorded in the US and Western Europe, as well as by the increased use and availability of improved handsets, inexpensive laptops, faster broadband, and extensive Wi-Fi connections.
The survey covers 35 countries and shows digital advertising’s share of total ad investment rising from 8% in 2005 to 15% in 2009:
The “Interaction: Addressable, Searchable, Social and Mobile” study finds that internet advertising has been the principal source of media investment growth in western nations since 2001 as spending in traditional media has leveled off.
Among other key findings of the report:
The study also found that the amount of time consumers spent online was increasing, from a mean of 27 minutes daily in 2005 to a projected 46 minutes next year.
The report concluded that the increased time was generally not a result of consumers’ spending less time with TV, radio and print but rather carving out more time to spend online each year, or possibly multitasking, which raises the bar for advertising creativity and engagement.
“This report aims to improve advertisers’ success rate in digital marketing,” said Rob Norman, global CEO of GroupM Interaction. “There’s little doubt that interactive channels are increasingly vital to delivering reach and engagement and will only become more so in the coming years. This report sheds considerable light on how best to use these platforms and how marketers can get the most out of their investment in them.”
About the study: In addition to spending forecasts, the survey also explores interactive media use in 35 countries, including a look at consumer time spent online compared with other media, e-commerce, top websites, and related interactive activities. It also quantifies ad investment in paid search, internet display, mobile, email, and gaming.
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