Emerging markets drive online advertising revenues

Tuesday, 28 December 2010 00:01 - - {{hitsCtrl.values.hits}}

NEW YORK, NY- With economies in emerging markets showing significant growth, analysts are anticipating an increase in advertising spending over the next year. Corporations are committing more and more of their advertising budgets to the Internet, as internet marketing offers notable targeting and data-focused return-on-investment capabilities.

The Bedford Report examines the outlook for companies in the Internet Information Providers Industry and provides research reports on Baidu, Inc. and Yahoo! Inc..

Earlier this month, one of the world’s top advertising agencies, MagnaGlobal, raised its 2011 global ad sales growth forecast to 5.4 percent growth from 4.2 percent. Meanwhile, ZenithOptimedia -- another major advertising agency -- said developing markets will account for nearly 36 percent of all advertising spending by 2013, up from 31.5 percent this year. ZenithOptimedia added it expects China overtaking Germany as the world’s third-largest ad market behind the United States and Japan.

MagnaGlobal argues that online advertising would overtake newspapers as the world’s second-largest advertising medium by 2013. ZenithOptimedia forecast online advertising sales would rise 48 percent.

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Market share is a stat that gets a lot of publicity in the search engine industry. While Google is the clear cut leader in North America -- presently Google has 66.2% of US market share according to ComScore Inc -- it is a different story in China. iResearch recently released reports claiming that Google accounted for 21.6 percent of China’s Internet search-market revenues in the third-quarter. Baidu remains the dominant search engine leader in China, accounting for nearly 73% of Chinese market share according to iResearch.

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