Online Ad Spending to Increase Slightly through 2010

Spending on online advertising dropped between January and June 2009 in comparison to the same period in 2008.  However, PricewaterhouseCoopers LLP (PwC) analysts emphasized that the 5.3% decrease was smaller than that experienced by other advertising formats.  The picture for the rest of 2009 and 2010 is a little brighter. Media economist Jack Myers predicts that Internet-​based media spending will finish the current year with a 0.5% decline and see about a 1% increase in 2010. 1078636__lens_

For the first half of 2009, spending on Internet advertising, $10.9 billion, broke out as follows:

  • Search 47%
  • Display 22%
  • Classifieds 10%
  • Rich media 7%
  • Lead generation 7%
  • Digital video 4%
  • E‑mail 1%
  • Sponsorship 2%

PwC analysts note that digital video is the one sector of  Internet advertising that is experiencing growth in 2009.

To determine which industries may be planning to spend the most on future online advertising, consider the recent past.

According to the PwC survey, the top industries that use online advertising are:

  • Retail 20%
  • Telecom 16%
  • Financial services 12%
  • Automotive 11%
  • Computing 10%
  • Consumer package goods 6%
  • Leisure travel 6%
  • Entertainment 4%
  • Pharma/​Health care 4%
  • Media 4%

For now, Internet advertising remains highly concentrated. The top 10 companies bring in 71% of revenues and the top 50 companies control nearly 90% of the revenues.

[Sources: Jack Myers ad spending forecasts, September 2009; IAB Internet Advertising Revenue, 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.