Online advertising business growing rapidly
The slowdown in the advertising market caused by the economic crisis has slightly dampened growth in the online sector. However, the volume is now growing at a faster pace again.
The slump in the advertising market in the wake of the economic crisis has put a slight damper on growth in the online sector. However, volumes are now increasing again at a faster pace. According to the analysts at Magna Global, global Internet advertising expenditure is even expected to break the 100 billion dollar mark by 2015 in view of the expected strong development. This would mean that the volume would almost double within five years. However, experts are skeptical.
This year alone, Magna Global expects growth in the online advertising business of 12.4 percent to 61 billion dollars. Search engine advertising is the most important driver here. In 2010, the segment is expected to grow by 16.5 percent to just under 30 billion dollars. The global market leader Google is claiming a large share of this for itself. At the same time, however, the group is facing competition in some countries. The fastest-growing markets, Russia and China in particular, pose a challenge for the internet giant with almost insurmountable political hurdles. However, this will not hinder the growth of the advertising market.
Social networks such as market leader Facebook are also contributing significantly to growth in the online advertising sector. According to the Magna Global forecast, the volume will increase by 11.7 percent in 2011 and then by a constant eleven percent until 2015 to reach a total of 103 billion dollars. Latin America is expected to be the fastest growing region. The global economic recovery, the increasing number of companies and strong brands as well as the growing competitive pressure between advertisers in the online sector are decisive factors for the expected trend.
This year alone, Magna Global expects growth in the online advertising business of 12.4 percent to 61 billion dollars. Search engine advertising is the most important driver here. In 2010, the segment is expected to grow by 16.5 percent to just under 30 billion dollars. The global market leader Google is claiming a large share of this for itself. At the same time, however, the group is facing competition in some countries. The fastest-growing markets, Russia and China in particular, pose a challenge for the internet giant with almost insurmountable political hurdles. However, this will not hinder the growth of the advertising market.
Social networks such as market leader Facebook are also contributing significantly to growth in the online advertising sector. According to the Magna Global forecast, the volume will increase by 11.7 percent in 2011 and then by a constant eleven percent until 2015 to reach a total of 103 billion dollars. Latin America is expected to be the fastest growing region. The global economic recovery, the increasing number of companies and strong brands as well as the growing competitive pressure between advertisers in the online sector are decisive factors for the expected trend.
