Internet Growth Projections: 6.6%

I was doing research for our client the Entertainment Connection and found a Hollywood Reporter article written by Georg Szalai siting an annual study from PricewaterhouseCoopers (PwC) in June of 2006 predicting that a surge in growth in the online sector, global entertainment and media will expand into a $1.83 trillion industry in 2010, up from an estimated $1.33 trillion in 2005.

The report also indicated that the biggest global industry engines during that time frame will be Internet advertising and access spending, for which PwC projects a compound annual growth rate of 12.9 percent. The Internet sector, the report said, would be set for a five-year compound boost of 8.4 percent -- driven by online ads, radio/out-of-home media.

The article also said, "Internet advertising will see the largest five-year surge -- at an 18.1% compound rate -- from an estimated $22.45 billion last year to $51.6 billion in 2010... TV network ad revenue will increase to $51.95 billion in 2010, and online ads to $25.5 billion."

These figures are interesting, especially when we note other research that talks about declines in other media. In our MarCom social media marketing powerpoint presentation I have mentioned the following stats:

Decline in traditional media
–Box office is down 7%
–Newspaper circulation peaked in ‘87
–Down another 2.6% in 2006
–Radio was down 4% in 2006
–TV viewership is rising; audience is fragmenting and show ratings are declining
–Magazine ad revenues are up a bit; number of ad pages is flat; women’s magazine circulation is down
–Celebrity magazines continue to grow …

Ask any student where they hear the news -- as did at Cal State Northridge where I lectured a couple of weeks ago -- and they will tell you, "on the Internet."

The bottom line here is that marketers are realizing that the budgets they set for the future must include good white hat search engine optimization and social media strategies.