20% growth in Internet adspend for 2005

6 Jan 2005

The strong rise in Internet advertising will continue in 2005, according to new research by media agency Carat, which is predicting growth of 20% for the year.

The figure matches the 20% growth expected for 2004, according to Carat, which is also predicting a substantial rise in Internet's share of global adspend, which currently stands at 3%.

The agency is also predicting that the fragmentation of media and move towards digital will also have a positive boost for outdoor media.

Across the board, global advertising expenditure is set to grow by 4.9% in 2005, and Carat has revised its estimate of 2005 UK adspend growth up from 4.3% to 4.6% and hailed the current expansion of marketing budgets as the longest continual period of improvement since the beginning of 2000.

Doug Flynn, CEO of Aegis, said: "The one-off impact of the quadrennial effect -- additional spend generated by major sports and political events -- provided a fillip to global adspend in 2004 and we see 2005 growth settling in at 4.9%, with advertisers' confidence stable and the market looking firm."

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