And who stands to gain the most with this growth?
Google of course.
Rory Cellan-Jones, a blogger for the BBC, calculates that Google will overtake the ITV television network as the biggest seller of advertising in the UK this year. (ITV sold about £1.5 billion of advertising last year.)
Morgan Stanley estimates Google’s total advertising revenue will be $21.9 billion globally. Excluding the payments it makes to companies that display its ads, Google’s total ad revenue will be $15.7 billion. Time Warner, the largest media company in the world, earned $8.8 billion in advertising revenue last year, and Viacom had $4.7 billion in ad revenue last year. No one comes close to Google.
ChasNote points out the above chart comparing 2006 to 2007 ad dollars in the US. Online growth is exploding while Broadcast TV, Radio and Newspaper drop.
More than just ad dollars following a trend or digital hype, the growth is being driven due to real changes in behavior: 1) Rising number of people online, 2) the introduction of cheap laptops and 3) the growing popularity TV shows on the Internet.