Another big online ad spend report was unleashed earlier this week predicting growth, of course, but the milestone here is that spend in the UK and Sweden will pass the 10 percent mark for the first time. In line with the findings by IAB/PWC/WARC we wrote up earlier today, ZenithOptimedia predicts that the UK online ad market will increase to 12.9 percent of the total ad market. In Sweden, 10.5 percent is predicted, though Australia, Japan, Norway, South Korea, Taiwan and Israel will take slightly longer to reach the 10 percent barrier, forecast some time in 2008.
WaPo: Growth is driven by smaller brands that can target niche groups more effectively online. Total web ad expenditure is forecast to grow 84 percent from 2005-2008 to $34.2 billion – and Zenith revised that figure from the 76 percent it published in July. Speaking about the US market, ZenithOptimedia’s head of publications said: “It’s got a long way to go to catch up with newspapers, but certainly it looks like magazines, in the medium to long term could be on a similar level. Magazines have been losing share for many years, and obviously the internet has only been gaining.” Mid-term elections are also expected to contribute to ad spend. Report
Related: UK Online Ad Spend Still Booming, Outstrip Print By End 2006
– The New Guys Wringing Every Last Buck From Online Classifieds
This article originally appeared in MediaGuardian.