Net Ad Spend To Surpass Other Media (By Including Net Sales at Traditional Sites)

Posted by: Heather Green on August 07

Alerted by headlines online that Veronis Suhler Stevenson had put out a new study on advertising that predicted that the Internet ad sales will surpass newspapers (which right now grab the most ads), I dug in and found some nuances worth mentioning.

Indeed,Internet advertising is expected to hit $61.9 billion by 2011, up from $30 billion this year. But that’s when you combine the pure play advertising from folks like Google with the online advertising at traditional media properties, estimates VVS.

Of the total $61.9 billion in Internet ad spend, the pure plays will pull in $34.8 billion, while newspapers, B2B media, radio and other traditonal outlets will bring in $27.2 billion. At $9.1 billion, newspapers will get the lions share of that amount. Still, the question is is that enough for many newspapers to make the transition in their newsrooms? Traditional newspaper ad sales are expected to continue to grow between 2011 and 2006 and reach $60.4 billion, but at a lower compounded rate of 1.6% compared to 2.2% for 2001 to 2006.

And it adds up to pretty impressive growth online, though the % growth starts to slow down this year. After growing 40.5% in 2005, and 35.8% last year, it’s projected to increase by 28.7% this year and eventually taper down to 14.7% in 2011.

I also thought this was an interesting observation:

“The double-digit gain in overall Internet ad spending will be driven mainly by the traditional media online ad platforms. Websites operated by traditional media companies will capture 43.9 percent of the overall online ad market by 2011, up from 36.2 percent in 2006.”

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