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Online ad spending in the US will surpass newspaper advertising by 2011 as brands shift their spending onto digital media, according to a new report.

Covered by the FT, the Veronis Suhler Stevenson (VSS) study predicts that the online ad market will hit $62bn in 2011, with newspaper advertising expected to reach $60bn by the same date.

James Rutherfurd, managing director of VSS, said:

“The path of online advertising and newspaper advertising is a continuation of what we’ve been observing for many years, but it is finally getting to the point where the lines will cross.”

Online ad spending has already overtaken newspaper advertising in the UK, according to the IAB’s figures for last year.

However, the VSS study suggests there will be a much longer lag time in the US while brands align their spending with changing media consumption. The survey indicates that for the first time, US consumers will spend more time online than they will reading newspapers this year.

The IAB’s figures show online accounted for 11.4% of the overall UK ad market last year, compared to newspapers’ 10.9%. The UK also has the highest ad spending per internet user.


Published 7 August, 2007 by Richard Maven

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