Spending on Internet Display Ads Rose 9.9% in 2010

According to Kantar Media’s latest figures, ad spending in 2010 increased nearly 10 percent year-over-year in 2010.

The provider of advertising and marketing information found that total advertising expenditures rose 6.5 percent in 2010, finishing the year at $131.1 billion. In the fourth quarter, ad spending was up 7 percent from the previous year, thanks in large part to “the long-tail of small advertisers outside the Top 1000.”

While the 6.5 percent increase is certainly good news, “The more comprehensive assessment is that increased spending has not benefitted all sectors equally,” according to Jon Swallen, SVP of research at Kantar Media North America. “While television media have recouped their losses from the 2009 advertising downturn, several other large segments are still 15 to 20 percent below their 2008 peaks.”

Internet ad spending (display ads only) increased 9.9 percent in 2010 vs. 2009, according to Kantar Media. It was second only to television media, which saw ad spending rise 10.3 percent year-over-year.

Under the TV media umbrella, network TV saw spending rise 5.3 percent, while cable TV saw spending increase 9.8 percent. Meanwhile, spot TV spending rose 24.2 percent, while Spanish language TV saw spending rise 10.7 percent. National syndication TV saw spending drop 2.8 percent year-over-year.

Spending on magazine media rose 2.9 percent in 2010, according to Kantar Media. This sector was led by Spanish language magazines, Sunday magazines and consumer magazines.

Radio media saw ad spending rise 7.6 percent, while outdoor ad spending rose 9.6 percent and free-standing inserts saw spending rise 5.4 percent.

Newspaper media was the only media sector to see a decline in ad spending in 2010, with a 3.5 percent dip year-over-year. This was driven by a 4.6 percent decline in ad spending for local newspapers.

According to recent numbers from the Pew Research Center’s Project for Excellence in Journalism, 2010 was the first year U.S. marketers spent more money on online advertising than on newspaper advertising. Last year also marked the first time online readership leapfrogged newspapers’ print readership in the U.S.

In 2010, $25.8 billion was spent on online ad spending, slightly more than the $25.7 billion spent on newspaper advertising.

In 2011, Internet ad spending is expected to reach $28.5 billion, while newspaper advertising is expected to decline to $24.6 billion, according to eMarketer.

Sources:</strong

http://kantarmediana.com/intelligence/press/us-advertising-expenditures-increased-65-percent-2010

http://www.emarketer.com/blog/index.php/stat-day-online-advertising-surpasses-newspapers-2010/