A digital marketing and media research firm said Tuesday that advertisers this year will for the first time spend more money for online advertising than for newspaper advertising.
eMarketer says says total newspaper spending [print and online] for 2010 will drop to $25.7 billion, a 6.6 percent decline, while online advertising will jump 13 percent to $25.8 billion for the year. Spending on print newspapers alone will fall to $22.8 billion for the year.
Newspapers will see a gain of a 7.8 percent in online ad spending this year, to $3 billion – making online ad revenue 11.67 percent of the total spent on newspaper ads. (The numbers don’t add up correctly – the $3 billion online and newspapers’ $22.8 billion for print alone, for example – because of rounding, the report says.)
“The spending gap will widen significantly next year,” the report says.
Geoff Ramsey, chief executive officer at eMarketer, said online ads are typically seen as more reliable because their effectiveness can be measured, whereas print ads “are often difficult to tie to a measurable financial result,” according to Bloomberg News. The bad economy has also accelerated the move toward digital platforms.
“It’s something we’ve seen coming for a long time, but this is a tipping point,” Ramsey told The Wall Street Journal.
Total ad spending in the U.S. is expected to increase 3 percent to $168.5 billion in 2010.
eMarketer also says that total US online ad spending will continue double-digit growth through 2014, when it will surpass $40 billion.