Ad Revenue on the Internet Set to Shift from Newspapers

Ad Revenue on the Internet Set to Shift from Newspapers

As more businesses become aware of the potential of advertising online, the more mainstream it could potentially become. According to PricewaterhouseCoopers’ Global Entertainment and Media Outlook for 2010 to 2014, Internet as an advertising medium is set to become the second largest in the U.S. behind television.

As a result of the global recession:

The online ad business, excluding mobile ads, is set to expand to $34.4 billion in 2014 from $24.2 billion in 2009, according to the report, which PwC plans to release Tuesday.
Newspapers, meanwhile, continue to suffer from a decline in advertising revenue. According to numbers released by the Newspaper Association of America earlier this year, print advertising revenue dropped 28.6% in 2009 to $24.82 billion. The PwC report estimates that print advertising in newspapers will hit $22.3 billion by 2014.

Based on the PwC report, it predicts that advertising across video, email and interactive media will reach $6.6 billion in 2014 from $4.7 billion in 2009. And with the launch of new mediums such as Google TV, this could grow the segment further because of the low costs of producing ads.

In addition, advertising on mobile phones are set to grow as wireless networks are upgraded and more phones are becoming internet enabled.  According to the Pwc report, Mobile advertising in North America is predicted to quadruple from $414 million in 2009 to $1.6 billion in 2014.

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