Weekly Digital News Roundup: Dec 5 – 9
Paid Search Estimated to Grow 15% Next Year
- According to ZenithOptimedia, brands will spend 12.6% more this year in Internet advertising. Furthered by online video and ads, the company’s study predicts 16.4% growth in 2012, as well as 15% growth for paid search in 2012 and 2013.
- The study goes on to state that brands will spend upwards of $50 billion on online ads in the United States by 2015. Online video ads are expected to exhibit the fastest growth by increasing more than 52% this year.
- Specifically, a large portion of this growth will be driven by political ads as part of the 2012 presidential elections. Exponential growth such as this is a pretty clear testament of just how much online advertising and the Internet is steadily becoming even more of an important part of our daily lives.
More Users Turning to the Internet for Entertainment, Study Finds
- As part of the results of a study that will surprise very few people, a growing number of Americans are turning to the Internet as a source of entertainment. This study, conducted by the Pew Internet & American Life Project, surveyed 2,260 U.S. adults from July to August. It found that on any given day, more than half (53%) of users aged 18-29 will go online for no reason except to have fun.
- While young people are the most likely age group to kill time on the Web, this trend exists across all ages. Pew found that 58% of American adults overall go online, a number which has increased from 29% in 2000.
- Looking at these numbers that have nearly doubled in the past decade, I’m really not surprised. Blogging, comedy websites, and other forms of entertainment have exploded in popularity over the past few years, giving users of all ages the chance to find a new form of entertainment somewhere on the Web – particularly when you’re looking for the perfect form of procrastination.
Google Controls 44% of Global Online Advertising
- A report issued by ZenithOptimedia reads both good and bad for Google. The numbers are playing Google’s share of global internet ad expenditure at a monopolistic 44% in 2010. As a comparison, Yahoo! owns 8.3%, while Microsoft owns a mere 4%.
- According to some industry experts, these numbers could prove to be detrimental to Google in the midst of its antitrust investigations, particularly when compared to other major US internet companies. However, these companies only have a share in a minority market; these numbers represent 16% of global ad revenue. TV, by comparison, holds 40.2% of all ad expenses.
- What’s interesting is that, as ZenithOptimedia states, globally paid search will represent about 49% of online advertising in 2011, a number that is projected to grow alongside classified and display search over the next few years. It’ll be interesting to see how much Google’s shares will grow in the global ad expenditures, particularly since the company is pushing to turn YouTube into a TV/cable alternative.