Advertising spend is the US has fallen for the second quarter in a row, something that has not happened since 2001. A report from TNS Media Intelligence says “total ad spend for the first half of this year was $72.59 billion, a 0.3% slide compared with the first six months of 2006.”
The decrease in advertising spend is not exclusive to the US, with the European and Asia markets both reporting a downward trend.
Advertising spend on the traditional areas of Print, Radio and Television has decreased, while “online” reported the largest gain in spending with an increase of 17.7 %. As a percentage, online spend is a lot smaller than traditional media but lately has experienced gains, while other mediums decline. Globally Merrill Lynch had predicted that
“In 2007, online ad spend growth worldwide is projected to reach $14.5 billion, an increase of 24 percent”
With there being no indication that the unprecedented growth in online spending will stop any time soon, the future looks bright for website owners. The Internet can reach a huge audience at a fraction of the cost of traditional media.
With the number of online businesses and users only going to increase, there are 14.5 billion reasons why website owners should apply some online advertising to their site today.