Net advertising to keep booming, report says
06-21-2008, 05:28 PM
#1
Net advertising to keep booming, report says
Taken from: The Star
Jun 19, 2008 04:30 AM
RITA TRICHUR
BUSINESS REPORTER
Internet advertising will continue to grow at a blistering pace in Canada, blossoming into a $3.4 billion (U.S.) industry over the next five years as more consumers migrate to their computers and mobile devices to access multimedia content, a report says.
PricewaterhouseCoopers' latest Global Entertainment Media Outlook suggests online advertising is already enjoying unparalleled growth in this country, soaring 33.2 per cent to $1.3 billion last year.
In 2012, Web-based advertising is expected to still be "Canada's fastest-growing segment," with a 21.1 per cent compound annual growth rate to $3.4 billion.
"Keyword search, classified advertising and online video advertising – full-motion video ads shown on the Internet – will be the fastest-growing components," said Jerry Brown, director of the Canadian entertainment and media advisory practice at PricewaterhouseCoopers, often known as PwC.
"In the mobile market, wireless network upgrades will similarly drive mobile advertising."
The report, however, also notes that Internet-access growth lost some momentum last year, coming in at 7.7 per cent to $3.4 billion.
"With broadband penetration already very high in Canada, broadband-access spending growth moderated." Domestic spending is forecast to grow 10.6 per cent a year to $5.6 billion by 2012.
In the meantime, the study suggests, the explosive growth in both "wired and mobile" advertising is already having a transformative effect on traditional media such as television and newspapers.
Conventional television broadcasters, already losing eyeballs and ad dollars to specialty stations, are bracing for more competition from mobile TV upstarts.
"It will be interesting to watch the mobile TV market and how that affects revenues over the long term," Brown said.
The report projects the total television-ad market will increase to $3.4 billion in 2012 from $2.9 billion last year. Specialty-channel advertising will be the "faster-growing sector," increasing to $1.1 billion from $847 million over the same five-year period. Newspapers are also expected to experience a marked shift as more readers flock to the Internet.
Total newspaper advertising is forecast to rise to $3 billion in 2012 from $2.7 billion in 2007, the study says, adding that digital advertising will probably fuel much of that gain.
Online advertising is expected to record unsurpassed growth for years to come, but PricewaterhouseCoopers cautions industry players not to "lose sight of the growing 50-plus demographic who will continue to consume the media in the format they have become accustomed to."
Tracey Jennings, who also works in PricewaterhouseCoopers' entertainment and media practice, suggested traditional media still appeal to mature consumers.
"This older generation will balance out the new Net generation, meaning traditional media will continue to be significant," she said.
RITA TRICHUR
BUSINESS REPORTER
Internet advertising will continue to grow at a blistering pace in Canada, blossoming into a $3.4 billion (U.S.) industry over the next five years as more consumers migrate to their computers and mobile devices to access multimedia content, a report says.
PricewaterhouseCoopers' latest Global Entertainment Media Outlook suggests online advertising is already enjoying unparalleled growth in this country, soaring 33.2 per cent to $1.3 billion last year.
In 2012, Web-based advertising is expected to still be "Canada's fastest-growing segment," with a 21.1 per cent compound annual growth rate to $3.4 billion.
"Keyword search, classified advertising and online video advertising – full-motion video ads shown on the Internet – will be the fastest-growing components," said Jerry Brown, director of the Canadian entertainment and media advisory practice at PricewaterhouseCoopers, often known as PwC.
"In the mobile market, wireless network upgrades will similarly drive mobile advertising."
The report, however, also notes that Internet-access growth lost some momentum last year, coming in at 7.7 per cent to $3.4 billion.
"With broadband penetration already very high in Canada, broadband-access spending growth moderated." Domestic spending is forecast to grow 10.6 per cent a year to $5.6 billion by 2012.
In the meantime, the study suggests, the explosive growth in both "wired and mobile" advertising is already having a transformative effect on traditional media such as television and newspapers.
Conventional television broadcasters, already losing eyeballs and ad dollars to specialty stations, are bracing for more competition from mobile TV upstarts.
"It will be interesting to watch the mobile TV market and how that affects revenues over the long term," Brown said.
The report projects the total television-ad market will increase to $3.4 billion in 2012 from $2.9 billion last year. Specialty-channel advertising will be the "faster-growing sector," increasing to $1.1 billion from $847 million over the same five-year period. Newspapers are also expected to experience a marked shift as more readers flock to the Internet.
Total newspaper advertising is forecast to rise to $3 billion in 2012 from $2.7 billion in 2007, the study says, adding that digital advertising will probably fuel much of that gain.
Online advertising is expected to record unsurpassed growth for years to come, but PricewaterhouseCoopers cautions industry players not to "lose sight of the growing 50-plus demographic who will continue to consume the media in the format they have become accustomed to."
Tracey Jennings, who also works in PricewaterhouseCoopers' entertainment and media practice, suggested traditional media still appeal to mature consumers.
"This older generation will balance out the new Net generation, meaning traditional media will continue to be significant," she said.
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