Worldwide Online Ad Spending to Hit $25 Billion by 2013

Marketers Expected to Put More Dollars Behind Search, Video, Social Media as Display Declines

Internet ad spending is forecast to keep growing despite the recession, but the mix of online spending is changing as display falls further out of favor with marketers, leaving online alternatives to fight for the marketing dollar.

According to a forecast by PricewaterhouseCoopers, total internet ad spending in the Europe, Middle East and Africa region will grow to $25.2 billion in 2013 from $19.4 billion in 2008. At the same time, online display will drop to $4.8 billion from $5.1 billion. In the U.S., display-ad spending is expected to drop to $4.4 billion in 2013 from $4.8 billion in 2008. Incidentally, display will decline over the next two years but start growing again in 2011 — it just won’t be enough growth to make up for the earlier drops.

So if total spending grows between 2008 and 2013, but display, responsible for a large portion of the online-ad outlay, does not, what will drive the increase? For starters, search, which is expected to see steady, continuous growth through 2013. Marketers are diverting more and more of their online spend to search, not just because of its accountability but also because of the increasing sophistication of search strategies.

For more on this interesting article go to Adage.com