Internet Ad Spend to Top $18 Billion

The Internet will account for 4.6 percent of the total global advertising spend for 2005, according to ZenithOptimedia’s quarterly forecast. That’s up from the 4.3 percent cited in its forecast released in October.

Ad spending on the Internet channel will top $18 billion this year. Commitment to online is expected to increase to 6.4 percent of the market by 2008. Through 2008, Internet advertising is expected to add $15.8 billion new dollars, accounting for 17 percent total global ad growth.

ZenithOptimedia compares Internet ad spending with the gross domestic product of a country, saying it would rank in the top five in size and growth. “Like a Western Europe giant growing at an emerging Asia rate,” said the report.

The report points to Sweden, an online leader, as an example of the Internet channel’s future. In that country the Internet accounts for nine percent of advertising, and is forecast to rise to 12 percent. The report states that, “In time, we may find the Internet assumes such a double-digit share worldwide, comparable to the share magazines take today.”