Dec 8, 2011 114 reads by Navneet Kaushal

As compared to 2006, Google’s share of the global advertising market has increased by 10% or from a 34.9% in 2006 to 44.1% in 2010! this phenomenal growth has established Google firmly as a Juggernaut in online advertising. ZenithOptimedia has prepared this financial report,that shows that Google is growing unaffected by the economic slowdown.

As ZenithOptimedia is quoted, “Over this time Google has tightened its grip on global search (raising its share of searches from 72% in 2006 to 85% now) and established a lead in traditional display and online video with the help of the acquisition and development of companies like DoubleClick and YouTube. In addition, its three main early competitors (Microsoft, Yahoo! and AOL) have failed to match this pace of development and lost a lot of ground; their combined market share fell from 33.1% in 2006 to 13.8% in 2010.”

According to the report, Facebook has grown too, and as compared to 2006, is now a major supplier with a market share of 3.1% in 2010. Facebook over took AOL in 2010 and seeing the current growth is expected to leave Microsoft behind by the end of 2011.

ZenithOptimedia has made growth predictions in global ad spend till 2014, as things will continue to look up despite the crisis in Europe. The reason behind this sustained growth are the events that occur every four years.

We quote, “Every four years the quadrennial events- the summer Olympics, the European Football Championship and the US Presidential and other elections- provide a reliable boost to the global ad market. This time we expect the combination of the quadrennial effect and the Japanese recovery to add US$7 billion to ad expenditure in 2012. Without this extra stimulus, ad expenditure would grow 3.1% next year, slightly less than this year.”

Global Ad Market Growth Predictions:
ZenithOptmedia has predicted these figures for the world markets.

  • Western Europe– Due to the economic turmoil, will grow by just 2.0% in 2012. However, the improvements in economy may see a 2.8% growth in 2013 and 3.3% in 2014. Global ad expenditure would grow by 3.2%.
  • Central & Eastern Europe– Will see a growth of 9.6% a year.
  • North America– A 3.6% growth in North American ad expenditure in 2012, which will grow to 3.7% in 2013 and 4.4% in 2014.
  • Latin America– is predicted to grow by 7.3% a year.
  • Japan– In 2012, the ad expenditure growth is predicted at 3.1%. Where as the growth will be 1.9 and 2.5 percent in 2014 and 2015, respectively.
  • Asia Pacific (Barring Japan)– Markets will grow by an average of 10.4% a year.

Other Parts of the World- As ZenithOptimedia further predicts, “The exception is the Middle East & North Africa, where political turmoil has disrupted media production and distribution, and made advertisers wary of attracting negative attention. We forecast the Middle East & North Africa to grow at an average of 1.3% between 2011 and 2014. Overall we expect developing markets which we here define as everywhere outside North America, Western Europe and Japan- to increase their share of the global ad market from 32.3% in 2011 to 35.9% in 2014.”

Paid advertising will account for almost half the expenditure in the internet advertising segment. However, the growth rate of 15.7% per year is impacted by the mobile ad market. Display advertising segment has an impressive growth at 18.9 percent per year and will continue trailing paid search into 2014, taking 22.6 and 25.6 percent, respectively.

Global Ad Expenditure Predictions:
According to ZenithOptimedia, till 2014, 48% of the total global ad expenditure growth will come from 10 developing markets. The BRIC- as in Brazil, Russia, India, and China markets will account for a full 33%.

Another prediction puts internet advertising share increasing to 21.2 percent. The present top players- Denmark, Norway, Sweden and the UK account for more than 25% of total spend. But in 2014, Canada is expected to join in the top spenders by replacing Denmark.

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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