Internet Advertising 15 Percent of Ad Spend in 2010

NEW YORK – The total spend on Internet advertising will reach $64.7 billion in 2010, accounting for 15 percent of the total global measured advertising spend, reports DMNews.com.

According to research from GroupM, the parent company of WPP media agencies Mediaedge:cia and MindShare, the ad spending will increase in both search and mobile and there will be a decline in ad spend on traditional media.

Digital advertising in the United States will account for 17 percent of the total ad spend in 2010, up from 15.4 percent this year and 13.9 percent in 2008. The 2010 predictions show that the total digital advertising spend will be about $24.4 billion, a 7 percent increase over 2009.

“People are spending less, and more carefully — so search volumes are up and conversions are down,” says Smith. “Absolute growth in online revenue is also coming despite straight budget cuts from many large traditional advertisers and despite dime-a-dozen oversupply of eyeballs from many Web sites pressing down on prices advertisers for online display space.”