Internet Advertising Expected to Outpace Traditional Media

Implications: Advertising analysts Robert Coen and Steve King offer their views on the state of advertising growth in 2007 at a recent conference.

Both men expect advertising to grow by less than 5%--the difference is in Internet Advertising.


Analysis: Universal McCann's Bob Coen has been making solid advertising predictions for what seems like 100 years (no offense Mr. Coen),and Steve King with ZenithOptimedia has also become a very respected opinion leader on the topic.  Both addressed the topic this week at the UBS media conference.

Bottom line:  Coen expects a 4.8% growth, King a 4.2% growth.  That's down, especially in television, due to no Olympics or big election dollars available in 2007, and the lackluster performance of two new broadcast nets, CS and MyNetwork.

What's interesting is that Mr. Coen doesn't include Internet advertising, where Mr. King does and is very bullish.  Mr. Coen expects growth in this sector to top out at 15%; Mr. King at nearly double 28.2%.  This is quite a divide.

Mr. King points out that Internet advertising will surpass outdoor advertising and probably radio advertising next year.  That's amazing.  Mr. King also expects to see more product placement in TV programming.  That's not such a big surprise.

This is just the latest news that Internet advertising shows no sign of slowing down, and continues to tread closer to the big boys--TV and newspapers.