In recent times, there has been a huge increase in the amount of marketing that has been focused towards online consumers. A recent study has indicated that there could be a dramatic increase in the amount of global online advertising that is conducted, with a predicted increase of 12.4% during 2010, or $61 billion dollars around the world.
Although there have been times of mass chaos in the currency market around the world, there is a very good chance that online advertising will grow in popularity. During 2010, online advertising is expected to rise 13% in US dollars, or 21.1% in Euros.
The most important aspect of online marketing has quickly grown, and is known as Paid Search. In 2010, this component is expected to see a huge increase in the market, making an extra $29.8 billion dollars, which is a rise of 16.5% from 2009. Although Google is the biggest search provider by far, there are still search engines making their way to the top in other countries, such as China and Russia. These two countries represent the largest untapped market for growth, but both governments have recently prohibited Google from establishing a presence there. Because of this, there are a few domestic search engines (namely Baidu and Yandex) that have begun to take over the lead in foreign online search.
The rest of online advertising will account for $31.2 billion dollars in 2010, which is an 8.7% increase. The rest of online advertising is more widespread, and accounts for other global influences, such as Yahoo and Microsoft. Not only that, but social networking sites are beginning to become a contender for online advertising, as social media websites like Facebook are beginning to take up the vast majority of internet users’ time. However, these outlets are still bringing in less revenue than in other areas, due to the fact that content publishers can usually broker a better deal with such sites.
Online growth trends will most likely continue over the next five years, with an expected rise of 11.7% in 2011 and about 11% a year through 2015. Latin America is predicted to be the fastest growing area, with an expected $3.5 billion dollars of advertising revenue coming in. Outside of current political events, Thailand will be the fastest growing advertising market coming out of 2010 with an extremely low starting point. China and Russia will most likely grow the fastest over the next five years.
There are numerous different reasons why online advertising growth is expected to rise, although they are different than what most people would expect. The growth will not come from more consumers spending more time online, and in fact, this may actually cause a decline in certain areas. Rather, growth will occur from the rising number of businesses who begin to realize that online media is the fastest and most widespread way to advertise services.
There will also be an increase in the competition between advertisers, leading each to pursue bigger and better advertising packages. Strategies will begin to change and expand, leading to more advertising, and consequently, more consumers.
Larger brands will also begin to increase their online presence as they realize that it is the most effective way to advertise. They will most likely remain a large presence in the world of television advertising, but will also increase the amount of money spent on online advertisements.
All of these components make for a great increase in the amount of money spent on online advertising in the next few years. Most companies are beginning to realize that Internet marketing is quickly taking over, and is the best way to reach a broad audience, as well as the target audience all at once.