Advertising Down, Internet Advertising Up, ZenithOptimedia Says

Consumers are saving money by spending more time at home, so media consumption is increasing, particularly of television and the Internet, says ZenithOptimedia Group. That might explain what appears to be consistent performance by providers of multi-channel video entertainment, though there are share shifts occurring.

And though overall advertising will decline globally in 2009 by about seven percent, Internet ad spending should increase 8.6 percent in 2009, down from 20.9 percent in 2008, ZenithOptimedia Group says.

Most of this growth will come from search advertising. The firm predicts U.S.search advertising to grow nine percent in 2009, while classified grows just 1.8 percent and traditional display shrinks 1.8 percent.

Internet video and rich media advertising is growing about 30 percent annually, while Internet radio advertising is growing 29.7 percent. Podcast ad revenue is growing 11.9 percent, but each from relatively small bases. Internet video, Internet radio and podcasting revenues represent about 12 percent of overall U.S. Internet ad spending.

Internet ad growth is predicted to grow at 11.3 percent in 2010 and 15.3 percent in 2011, ZenithOptimedia Group says. The Internet's share of total advertising will grow to 14.6 percent in 2011, up from 10.4 percent in 2008.

http://www.zenithoptimedia.com/about/news/pdf/Adspend%20forecasts%20April%202009.pdf