Advertising: Online about to overtake radio in slow ad market
Thursday August 28 2008
Europe's biggest media buyer yesterday reduced its forecasts for the global advertising market for this year and 2009 as a result of a slowdown in the US, Britain, Spain and China.
But Carat, part of the Aegis marketing empire, predicted that online advertising will continue to grow this year - albeit at a slower rate than in 2007 - and will overtake radio as the world's third most popular advertising medium behind TV and newspapers and magazines.
Its prediction comes after ZenithOptimedia, part of rival Publicis Group, made a similar forecast in June that spending on online advertising would overtake radio in 2008.
Overall, Carat yesterday dropped its estimate for global advertising spending growth to 4.9% this year, from its original forecast of 6%, and 4.8% in 2009, slightly down on its initial estimate of 4.9%. Last year global advertising spending increased by 5.1%.
Globally all areas of advertising except newspapers are expected to see some increase in advertising spending this year. But rapid growth in online advertising - predicted to be up 23.7% compared with 28.8% last year - will mean its total share of all advertising spending will increase to 8.6% this year, overtaking radio at 7.4%.