Globalisation now comprehends the movement not just of physical goods,
but also services, finance, people, information and ideas. As a result the
world is becoming ever more interlinked putting pressure on global, national
and local governance systems designed in a previous era by those with power and
influence at the time and, as trade agreements are negotiated, even now.
Technology continues to play an important role in communication, entertainment
and improving productivity. Convergence is leading to the merging of computers,
cell-phones, hi-fi, TV and other electronic devices, as well as the blending of
cable, wireless and satellite communication. The rise of outsourcing services
in countries such as India and the Philippines is underpinned by improvements
in the global telecommunications infrastructure.
The Internet plays a key role in all of this. Industry players are extremely active in producing new products and services, forming joint ventures or acquiring companies. Competition is fierce, particularly to gain access to the huge advertising revenues forecast. Litigation, protection of intellectual property and crime are all major challenges.
In the sections below, we list some of the key statistics and
developments for the two years prior to December 2007. To see how this fits
into our global outlook, we refer you to our
World overview. For more
recent information, we suggest you refer to the
MBendi Blog: Signposts to 2020 and the
twice monthly
MBendi
Newsletters.
In September 2006, Veronis Suhler Stevenson reported that, of US$ 22
billion expected to be spent in 2006 on online and mobile advertising, 37%
would be spent with traditional media companies versus 23% in 2000.
In October 2006, Zenith Optimedia forecast increased spending by smaller
brands will cause Internet advertising worldwide to generate more revenues than
posters and outdoor. Internet advertising was forecast to grow 30% in 2006 to
US$ 24 billion and by 84% by 2008. In the UK, where Internet advertising was
forecast to be 12.9%, search marketing will account for more than 50%. Global
ad spend will grow at 6% in 2006, 5.4% in 2007 and 5.9% in 2008.
In December 2006, ZenithOptimedia predicted global media advertising
revenues would grow 5.4% in 2007. Internet advertising was forecast to grow
28.2% to US$ 36.9 billion. In April 2007, Zenith Optimedia predicted Internet
advertising would overtake radio in 2008, not 2009. Advertising growth of 5.2%
was forecast for 2007 with Internet advertising growing at 28% with traditional
media advertising growing at 3.7%. Internet advertising in 2009 was expected to
be 9% of all advertising and 22.6% of UK advertising.
In August 2007, Veronis Suhler Stevenson predicted online advertising in
the USA will grow by 21% per year and overtake newspaper advertising by 2011
when it will be valued at US$ 62 billion. 2007 will be the first year the
average time spent online exceeds the time spent reading newspapers. By
September 2007, online advertising was the fastest growing advertising sector
and US online advertising was forecast to reach $US 20 billion in 2007, 7% of
the US$ 285 billion market. In October 2007, Zenith Optimedia cut its forecast
of growth in US advertising from 3.3% to 2.5% as a result of drop in property
adverts. Worldwide Internet advertising will grow by 30% in 2007.
In November 2007, Informa estimated that Mobile advertising will grow
from US$ 2 billion then to US$ 11.3 billion by 2011. In January 2007, Screen
Digest predicted user-generated video websites will only capture 15% of online
video advertising, expected to reach US$ 875 million by 2010. In July 2007, ABI
Research estimated that European online video advertising will grow from US$
200 million in 2008 to US$ 2.46 billion in 2012, while US growth will be from
US$ 260 million to US$ 2.1 billion.
In January 2007, Web TV downloads were forecast to grow tenfold to US$
6.3 billion in 2012.
For more information on Internet and the Media, we refer you to our
pages on:
Footnote: If you are aware of any highlights we have missed, please
contact us
with details.
