Internet ad spend to increase, report predicts

27th August 2008

Spending on internet advertising will grow to account for 8.6 per cent of total advertising expenditure globally this year, it has been predicted.

According to media communications agency Carat, this figure is likely to increase to 9.8 per cent in 2009.

Conversely, spending on traditional forms of media, such as newspapers, magazines and radio, will drop over the next year, Carat said.

The popularity of internet advertising is such that it will overtake radio to become the third most popular advertising channel by the end of 2008, the report stated.

Jerry Buhlmann, chief executive of Aegis Media, said: "With search now central to the planning and execution of any campaign, online media brings a greater level of accountability not just to itself but to TV, print and other forms of advertising.

"This is why we are predicting further strong growth for internet."

The study follows a report published by research firm IDC earlier this year predicting that the most popular form of online ads will still be keyword ads over the next three years.