Now that we are at the end of 2010, let’s talk some numbers, alright? According to eMarketer, online ad spend will grow to $25.8 Billion in 2010, up 13.9% from 2009. And how much will advertisers spend on newspapers ads over that same period? $22.78 Billion, a fall of nearly 10% from last year.
Notice something historic? Yes, this is the first time ever that advertisers will spend more money on internet marketing than newspaper ads. For anyone involved in the digital marketing industry, this is a pretty big deal. According to Geoff Ramsay, the CEO of eMarketer, this is the tipping point “Marketers are devoting bigger shares of their budgets to digital media as they see more customers shifting time toward the web…It’s something we’ve seen coming for a long time, but this is a tipping point.”
Only last year, the difference between money spent on digital marketing and newspaper ads was nearly $5 Billion, with digital channels lagging behind. This year, digital marketing was supposed to gain, but few people expected this kind of results. And Jeff says, it’s the economy that has something to do with this “The bad economy has actually accelerated the shift to digital advertising…Online ads, especially search ads, are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result.”
No surprise then that most analysts feel this trend is not going to see a turnaround anytime soon. Newspaper ad spend is further going to slide, and digital marketing will go further up through 2011. And beyond that, the sky is the limit, at least for those who have chosen to walk the digital path.