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Advertising Growth Slowing Down


Zenith Media reports that the boom decade of advertising growth has started to slow. Naturally, online advertising growth will slow with it. But comparative growth rates indicate online ad growth will still remain high. The year-to-year growth rate of traditional and online worldwide ad spending, both existing and projected, are:

1999-2000

Traditional: 7.9 percent

Online: 43 percent

2000-2001

Traditional: 6.0 percent

Online: 42 percent

2001-2002

Traditional: 5.9 percent

Online: 31 percent

2002-2003

Traditional: 5.6 percent

Online: 25 percent

Zenith also forecasts that online ad spending will continue to increase its modest share of overall ad revenues, with $10.9 billion expected to be spent on advertising worldwide on the Internet. In the United States, Zenith found that online advertising's strong growth rates are helping to buoy overall ad growth. Zenith further notes that U.S. Internet advertising spending is $6 billion for 2000, accounting for 5 percent of total display ads. This share is predicted to rise to 7 percent by 2003.

In 2000, European Internet ad spending is expected to amount to $395 million-double what was spent in 1999 and equal to 56 percent of non-U.S. ad spending on the Internet. Zenith expects this number will double again in 2001 to reach nearly $2 billion, which will be 64 percent of non-U.S. spending and 2 percent of total European display ad spending.

 

unknown, Entrepreneur.com December 29, 2000

Copyright © 2999 Entrepreneur.com. All rights reserved.

 

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