Back in January I indicated that 2010 U.S. online Internet ad spending established a record – $25.8 billion, a 13.9% increase vs. 2009. Internet ad spending will continue to hit new peaks over the next few years. Why? Shift happens!
In a recent report titled U.S. Ad Spending: Online Outshines Other Media, the author David Hallerman detailed increased quarterly spending for 2010. According to his projections, online advertising when the 4th quarter numbers are published, will set a new quarterly record spend of $7.25 billion! Consequently, analysts now predict double digit growth for five consecutive years; total online advertising expenditures will exceed $40 billion by 2014.
I am not surprised that marketers are shifting their advertising spending to online venues given the amount of time people now spend online. For the record, Internet advertising (the record $25.8 billion) just surpassed newspaper advertising to take second place behind TV among measured media. This shift will be further enhanced by the ease of getting online thanks to the growth in smartphones. Nielsen now projects that one in two Americans will have a smartphone by the time we close out 2011. In recognition of smartphones, digital video appeals to brands as a platform to get their messages broadcasted. Social networking sites is another area marketers are targeting to spend their online advertising dollars.
Sunday’s Big Game will further validate my point that advertisers are following the shift in consumer behavior. A leading research company estimates that two-thirds of viewers ages 18 to 34 indicated they plan to use their smartphone during the game to send emails, text messages, check out advertisers’ websites, post comments on a social network, etc. Then there is the day after when everyone will be on YouTube checking out all the Super Bowl ads. I remember reading that Volkswagen, after dropping out from Super Bowl advertising for nine years, had 1 million people view their 2010 ad online after the game; 850,000 views were on YouTube. No wonder online advertising is gearing up for the next level and ready to break more spending numbers. Shift happens!