2010 and Beyond: By The Numbers
As one year turns to another, and a new decade quickly takes shape, what does this mean for online advertisers…or anyone trying to make money online?
In some sectors it will be a year for growth, and for others it will be trying to regain lost footing and making up for the recent economic downturn. Regardless of your situation, it’s still a good time to jump in and see what the future holds for the Internet in 2010 and beyond. Let’s take a look at what is being forecast for online advertising (including search and digital media), social media growth, affiliate marketing…and more. Take a Look:
- With rival Facebook now claiming over 350 million users worldwide, MySpace will see a significant drop in advertising dollars. Worldwide ad spending on this network is projected to drop to $385 million. This is a 21% decrease from 2009 which saw revenues of $490 million.
- However, Facebook is on the up and up with worldwide revenues increasing 39% ($605 million) up from $435 million in 2009.
- Facebook is projected to account for one-quarter of all social network ad spending worldwide.
- Total Worldwide ad spending on social networks is forecast to hit $2.6 billion in 2010 (10.9% increase from the following year). Climbing up to $2.87 billion in 2011 (10.4% increase), $3.18 billion in 2012 (10.8% increase), and $3.49 billion in 2013 (9.6% increase)
- 25% of small business owners say they will commit more time to marketing with social media in 2010
- Spending on search advertising is expected to hit close to $18 billion ($17,765) which is an 11% growth from 2009. With 2011 rising up to $20,763 billion, 2012 $24,299 billion, 2013 $27,786 billion and 2014 $31,588 billion. We’ll see if this actually happens.
- 13% of online marketers are planning to increase their current spending levels by 20%.
- With another 13% expected to spend 20% less on search advertising. While 31.8% don’t plan on changing their current spending.
- $35 billion is expected to be spent on online advertising in 2010. This represents 11.4% of total media spending ($307 billion) which is expected to be spent next year. By 2012 online spending is projected to reach 15% of all media spending. I personally think this percent will be over 20% by 2012. In the coming years drops in traditional media spending will fall at quicker rates than expected. Especially in television and print newspapers.
- US Retail E-commerce sales hit $131 billion in 2009, and are expected to grow to $141 billion in 2010 (increase of 7.5% from the previous year). With 2011 growing to $157 billion (11.55 increase), 2012 seeing $173 billion in revenue (increase of 10%), and 2013 rounding out at $189 billion (increase of 9%)
- Affiliate Marketing Spending is projected to reach $2 billion in 2010, with 2011 coming in at $2.5 billion, and is expected to double by 2014. in 2009 online marketers spent $1.9 billion on affiliate marketing commissions.
Of course the only projections you can give hard data to are the ones that have already happened. However, I think it’s important to continually take a look at numbers like these to give us an exhaustive look at the state of the online industry.
As you can see, most sectors are projecting positive growth, and the Internet in terms of marketing, is still in its infancy stage. Looking how online advertising barely represents 10% of total media spending…is not only a shocker, but a true testament of how things will continue to grow.
At the end of 2010, it will be fun to see how things match up with today’s numbers. Considering the repressive state of the global economy, I think online advertising did fairly well.
Take a look at these numbers again, and tell us which one you think is the most inspiring. I look forward to hearing from you.
