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We’ve seen the change coming, but no one could have expected things to change this fast.
In an article released today in the Online Media Daily, it was reported that estimates of future advertising investment will make the Internet the leading advertising medium by 2011, when it surpasses newspaper spending.
Estimated internet ad revenues in 2011 are expected to be almost $62B. To put that in perspective, in 2002, internet ad revenues were roughly $2B, down -16% versus 2001 according to the IAB.
The report is from private equity firm, Veronis Suhler Stevenson. This is how they see it playing out:
- Ad spending on pure-play Internet sites reached $15.1 billion for 2006, and is projected to hit $34.78 billion in 2011, for a CAGR of 18.2%.
- Growth of 25.79% is projected for ad spending on traditional media-based Internet sites, which hit $8.585 billion in 2006, and is projected to reach $27.2 billion in 2011.
- National Internet advertising, which includes search, display, sponsorships, etc., is projected to remain the dominant dollar-generator with $38.897 billion forecast for 2011, representing an 18.2% CAGR from 2006-2011.
- Blog, podcast and RSS advertising is projected to reach $1.138 billion by 2011, registering the fastest growth rate at a 70.9% CAGR forecast from 2006-2011.
Anyone who’s been missing the wake-up call that traditional media is in trouble might want to check this out and quickly begin re-defining their skill sets and media strategies for the next decade.
Ad-push media is going to die.
KidWithMatches is the personal blog of Pete Eberbach, VP Director of Online Marketing & Technology with St. John & Partners.
Tags: ad revenues, advertising, blogs, mediapost, online media, online media daily, podcasts, rss