FI.com: Internet Ad Spend Poised to Overtake National Press

The internet will this year overtake national newspapers to become the third biggest advertising medium by spend, according to authoritative forecasts.

By the end of 2007, internet advertising will close the gap on regional newspapers, the number two medium, but will still be well short of television, the biggest outlet in the £12bn-a-year media advertising market.

The projection, seen exclusively by the FT, underlines the pace of growth in internet advertising and the challenge to businesses reliant on traditional advertising revenue.

Excluding internet spending, total media advertising would be in recession with television, national and regional press reporting revenue falls this year, it said.

The report comes from GroupM, a WPP holding company which drew on data from the group's media buyers, Mindsharre, Media-edge:cia, Mediacom and Maxus, which buy and plan more than 30 per cent of global media advertising.

It estimates the internet will take 13.3 per cent of the total media advertising market – excluding areas such as direct mail, public relations and market research – in 2006. National newspapers will take 13.2 per cent.

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