Online ads grow, beating outdoor marketing

Spending on internet advertising is set to rise over the next two years as more companies are recognising the power of online marketing, according to forecasts.

Research from Zenithoptimedia predicts global online advertising will attract 6.5 per cent of all advertising in 2008, which is up from 4.5 per cent in 2005.

The company said: "The internet is now firmly established as a mainstream advertising medium in developed markets and in many developing markets too.

"We predict it will overtake outdoor [advertising] in volume in 2007, even though outdoor is gaining share itself. By 2008 it will be catching up with radio too, which will have a 7.9 per cent share, down from 8.5 per cent in 2005."

By 2008 spending on general advertising is set to rise by more than the global level of GDP. The company said that the football World Cup later this year will boost ad spending.

Between 2005 and 2008 six of the 10 largest contributors to advertising growth will be emerging markets. China was the seventh-largest ad market in 2005 and predicted to be fifth-largest in 2008.