Emerging economies will play a major part in the growth of internet marketing and worldwide advertising online in the coming year, according to new research.
Worldwide internet marketing to grow in 2011 ‘due to emerging economies’
Businesses in developing countries and elsewhere could be turning to internet marketing consultants with renewed vigour in 2011, new research suggests.
Worldwide advertising spending will recover next year and even boom due to the popularity of expanded internet marketing in emerging economies, according to researchers at the ZenithOptimedia Group Ltd and Magna Global. This is expected to be driven by cheaper production processes and competitive pricing in the developing world.
The company explained that managed emarketing, among other things, will lead to a spending increase of 4.6 per cent across the sector next year following a strong 4.9 per cent growth in 2010. ZenithOptimedia client Magna tracks ad sales and projects 5.4 per cent growth of these in 2011. This adds to a 6.9 per cent gain this year registered by Magna.
Managed emarketing is particularly huge at the moment. ZenithOptimedia claimed that web advertising is growing three times faster than the rest of the marketing sector, and China will become the third-largest market for such services in 2011, placing it behind the US and Japan. This will also displace Germany from the top three.
The organisation was also quick to emphasise how spending is recovering after the 2008 financial crisis, and still falls short of projected targets though is sure to improve as confidence fully returns to the market.
ZenithOptimedia also noted that worldwide ad spending would not exceed its 2008 peak until 2012 due to high debt in the developed world, as well as unemployment in the US and currency woes in the Eurozone. It predicts growth of 5.2 per cent in 2012 and 2013 to bring it up to this level.
This week, Google announced that it changed its search engine optimisation algorithm to stop negative feedback from pushing up the popularity of websites. It follows a story in the New York Times about Vitaly Borker, a US glasses merchant who bullied customers in order to boost his ranking on the website.
Living Streams “Improving clients’ profitability through better use of the internet”.