Despite Overall Decline, Internet Ads Projected To Rise

Spending Expected To Rise On Internet

Online will be the one bright spot in what will otherwise be the worst advertising recession since 2001, two of the industry's leading forecasters predicted in new reports released early this morning. MEDIAPOST reports that while online ad spending growth will have its slowest year of growth yet since it climbed out of the last ad recession, it will still grow at rates that would seem healthy for the other major media. 

WPP's GROUPM unit projects online ad spending will expand 10% in 2009, a marked dip from its 22% rate of growth in 2008, but still a double-digit rate of expansion amid a global economic ad recession. PUBLICIS' ZENITHOPTIMEDIA GROUP predicts it will fare even better, expanding 18% in 2009.

Despite the continuing slowdown in the expansion of the online advertising economy, its share of advertising budgets will expand significantly during 2009 as most other major media remain flat or decline. Both agencies predict total worldwide ad spending will decline 0.2% during 2009.

"Advertisers are scrutinizing every penny," stated GROUPM Futures Director ADAM SMITH. "The automotive and financial services categories have obviously seen weakness across 2008, and retail will be under pressure as we move beyond its busiest fourth-quarter into 2009. Among our own client base we are not seeing wholesale cancellations, but we are seeing migration from expensive and less-tried-and-true media to value and certainty."

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