Digital Advertising Spend to Trump Newspapers by 2013
According to a new report by Zenith Optimedia, the digital ad market will overtake newspapers in value to become the world's second biggest medium by 2013.
The report predicts the value of the digital ad market will reach £57.7bn ($94.47bn), giving it a healthy lead over the projected value of newspapers at (£55.8bn ($91.25bn).
The agency, owned by Publicis, has also predicted that falling production costs which make the online display market more appealing to new advertisers has lead to online video and social media taking over search as the main driver of online advertising in 2010.
The report said: "Social media sites attract huge audiences, although click-through rates, and therefore costs, are often very low... We expect global display ad expenditure to grow at an average of 16.4% a year to 2013, while paid search grows by 12.8% and classifieds by 10.2%.
The entire advertising market's value looks set to rise from £272.89 ($446.13bn) in 2010 to around £316.3bn ($517.48bn) in 2013. Television will still enjoy the greatest share of the market in 2013 however, with £132bn ($215.98bn) due to be being spent on the medium compared to £110.2bn ($180.31bn) last year.