Ad Growth Goes to TV & Web in 2008

2008 is certainly a happy new year for advertising and marketing agencies.
U.S. media advertising spending is estimated to go up 4% (about $479 billion) in '08 compared with 2007's 3%. Spending worldwide is expected to be 7%.

According to the report and GroupM's Futures Director Adam Smith, the global ad growth will primarily go to televison (50%) and internet (30%) marketing. Smith says spending on sponsorships and public relations is growing faster than for traditional advertising. He also predicts that "5% of global ad investment will shift from developed to emerging economies in 2008, the largest such shift ever recorded". China will lead with 21% of all new money and the U.S. next in line with 20%. What is bringing this shift? The forecasted spendings are influenced by the 2008 Olympics being held in China and the U.S. presidential election.

Some other highlights to look forward to in the new year:

~ Internet ad spending is expected to exceed 10% of global ad investment in 2008 for the first time ever
~Search will comprise 65-70% of measured online advertising in 2008, up from 50% in 2005
~Online advertising is expected to be the largest single medium for Sweden for the first time ever
~Advertising spending in newspapers and classified advertising in traditional sources is expected to continue to suffer

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