Online ads to make up 15% of all spend in 2010, says GroupM

The WPP-owned media group, parent company of agencies including MediaCom and Mindshare, predicts global online ad spend will grow by 11% in the next year, helping to increase the total share dedicated to online from 13% to 15%.

GroupM said the increase is primarily due to increased spend for search and mobile, in contrast to less being spent on traditional media. Search will increase its share of online ad revenues from 38% in 2006 to 43% in 2010, while mobile is predicted to increase spend by 19% to 2010. This would increase mobile's share of ad spend to 6% of the total, or $3.3bn (£2bn).

The report also said display will account for 34% of all online ad spend in 2010, a slight drop from 35% this year because display had lost momentum as supply has overtaken demand.

Rob Norman, CEO of GroupM Interaction, said, "Search remains a key driver of digital marketing as advertisers compete to capture a disproportionate share of the intention that search behaviour represents. Now, however, the importance of influencing the organic listings has increased significantly, as has the focus on creating and capturing intent expressed in social media and micro-blogging actions. Search marketing is becoming intention marketing and is moving beyond results pages to activating and responding to the social graph."

The report comes a day after WPP supremo Martin Sorrell said digital will receive 20% of marketing budgets within the next five years (nma.co.uk 21 September 2009).

Published by: Charlotte McEleny

Published 22nd September, 2009

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