August 09, 2007 | Thursday
Report: Online ad market to surpass £30bn by 2011
By Jackie Danicki - Blogger in Marketing |News |Online Sales
Private equity firm Veronis Suhler Stevenson (VSS) has published its annual research report on the media sector, and the outlook for online advertising is as bright as one would expect: VSS predicts that the online advertising market will grow to $62bn (just over £30bn at current exchange rates) in 2011, outpacing newspaper advertising by billions. Here are the numbers, the implications, and an important note on fluctuating opportunities for marketers.
As reported in the Financial Times:
The shift in advertising spending from traditional media to online and digital alternatives is taking place across the globe. Already, some forecasters expect newspaper advertising to be overtaken by online spending in the UK and Sweden this year.
VSS’s research also looked at total time spent using various forms of media. In 2007, the analysts predict, time spent online will overtake time spent reading newspapers. More interestingly, as the FT notes, the shift to digital media has led to a slight decline in the overall amount of time spent consuming media.
Putting aside the fact that people do not ‘consume’ media like packets of Monster Munch - they use it (and in the case of the web, are increasingly savvy about bending the tools and technology to their own individual wants and needs) - this is a key point for marketers. In addition to people actively avoiding intrusive and interruptive advertising, blocking out what they can and hoping to forget the rest, the total opportunity to make an impact with potential customers is dwindling as media use declines.
So where to put your budget? You can either allocate it towards traditional methods with shaky (some would say meaningless) metrics for measurement and hope for the best, or make a real investment in connecting with those potential customers who are searching for products and services you have to sell to them.
As marketers’ hopes for a profitable place in the attention span of the man in the street dim, the possible ROI of choosing the smart way forward is higher than ever.
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