Internet Fuels Ad Economy, But TV Remains Biggest Factor

INTERNET FUELS AD ECONOMY, BUT TV REMAINS BIGGEST FACTOR
[SOURCE: Media Daily News, AUTHOR: Joe Mandese]
According to the most recent installment of GroupM's periodic "This Year, Next Year" advertising and marketing expenditures tracking study. in the short run, the Internet is playing a bigger role in driving worldwide and U.S. advertising growth than GroupM economist Adam Smith thought in his last prediction. But the Internet's stimulus is expected to begin to flatten next year, as TV remains the biggest influence in the advertising marketplace. "Among the traditional media, TV remains far and away the main engine of advertising growth in the 20% of the 'developing' global advertising economy. We see its headline growth contribution has slipped a point or two in 2006 and 2007 since our last forecast. This is the result of Internet upgrades," writes GroupM's Smith in the new report. "TV comes back with a mini-bounce in 2008 with the well-known stimuli of the US presidential elections (a possible billion-dollar race this time); the Olympics (another potential billion on USA TV alone, so one could begin guessing the global uplift at double that, and triple to include other media)."
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