A report by research firm eMarketer has forecast that UK Internet ad spend growth will diminish by more than 50 per cent in 2009 and predicted that the digital media sector will not fully recover from the economic downturn until the London Olympics in 2012.
eMarketer predicts that the Internet will continue to outperform other media with positive growth in 2009, but will still take a “big hit” as advertisers tighten up on all forms of marketing expenditure. The report states that 2009 will be a “very tough year” for UK digital media. In May, the firm was forecasting 17.2 per cent year-on-year growth in 2009 for the sector â€“ now it has cut this by more than half to 7.2 per cent, or £3.58 billion (E3.89 billion).
The research company added that the UK online ad market should improve again within two years, “but slowly”. eMarketer forecasts 10 per cent year-on-year growth in 2010 to £3.94 billion, and a 12.3 per cent rise in 2011 to £4.43 billion.
However, in 2012, the year of the London Olympics, digital growth will surge by 14.6 per cent year on year, to just more than £5 billion, according to eMarketer. The rate of growth will slow the following year, to 10.8 per cent â€“ but the UK digital media market will still be worth £5.62 billion