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Vahe Habeshian
Vahe Habeshian   BIO
04.02.07

Prediction: Radio Ad Spend to Drop below Internet in ‘08


MediaBuyerPlanner: ZenithOptimedia has totally revised its global ad spending outlook and now predicts that the internet will overtake radio as the fourth biggest ad medium a year earlier than it previously expected.
In a major revision, the agency released a report that predicts the internet will grow six times faster than traditional media through 2009, and that it will overtake radio in 2008, writes MediaPost. The agency also believes the internet will increase its share of the global marketplace from 5.8 percent in 2006 to 8.7 percent in 2009.
The internet already snares more than 10 percent of the ad market in Norway, Sweden and the U.K., the report points out. After online, cinema and outdoor media are the fastest growing media.
In its previous report, the agency predicted that TV was about to enter its first ever period of protracted market share loss, but the new report points out that demand for TV ad inventory has increased. It now predicts that TV’s share of global ad spend will be down just 0.2 percent in 2009 from 2005.
Newspapers, however, were downgraded, with a prediction of no growth.
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