Online Ad Spending to overtake Newspaper Advertising by 2011

By Ekalavya B • August 9, 2007

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Online advertising spend will overtake US newspaper advertising by the year 2011 according to Financial Times.

The findings are from a widely-watched annual research report on the media sector by Veronis Suhler Stevenson (VSS).

"In the 2007 study, published on Tuesday, VSS forecasts that online advertising will grow by more than 21 per cent per year to reach $62bn in 2011, making it bigger than newspaper advertising, which is expected to total $60bn in 2011.
Broadcast television and cable and satellite television combined will continue to take the biggest share of advertising dollars, and are forecast to reach $86bn in 2011."

That makes one think about Google’s expansion into print advertising! Was it a smart move? Or are they looking at dominating the entire scene of advertising?

Well since the above is primarily for the US Market, Indian newspaper publishing houses need not start to panic.

The Online Advertising Market in India in 2006 was at Rs 210 crores and is expected to grow to Rs 2250 crores by the end of 2009.

So while India Online Advertising market will be at $0.5 billion by the end of 2009 and at the same time the US Online Advertising market is expected to be at $42 billion. While the US figures are calculated based on a modest growth of 21 per cent per year, the Indian figures are calculated via a rather huge figure.

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