Sourced from Reuters
Television’s share of global advertising spending is expected to slip by 2007 as more ad dollars are diverted to the Internet, according to an industry forecast released on Monday.
Television’s share is expected to peak in 2006 at 37.9 percent of global ad spending, before slipping to 37.8 percent by 2007, according to a new study by ZenithOptimedia, a division of French advertising group Publicis.
Newspapers and magazines are also expected to see their market share decline. Newspapers are expected to end 2005 with a 29.8 percent global ad spend share, and see their market share fall to 29.3 percent in 2007.
The Internet’s share of ad spending is projected to be about 3.8 percent this year and rise to 4.4 percent by 2007. Net ad spending on the Internet grew 21 percent in 2004.
Overall, ZenithOptimedia projected a rosier ad environment through 2007.
Ad spending in 2005 is expected to grow 5.4 percent, up from an earlier forecast of 5.0 percent; growth in 2006 is expected to be 6.5 percent, up from 5.8 percent; and 6.1 percent in 2007, up from 5.8 percent