Online, Mobile Driving 2006 Ad Sales Increase

Sep 11, 2006  •  Post A Comment

Communications spending will increase in 2006, driven by double-digit growth in online and mobile services provided by traditional media companies plus the expansion of branded entertainment, custom publishing and public relations, according to a report scheduled to be released today by the private equity firm Veronis Suhler Stevenson.

Spending on Internet and mobile advertising, marketing and paid content through traditional media companies is expected to reach $25.5 billion by the end of 2006, according to VSS’s “Communications Industry Forecast 2006-2010.”

That marks a 26 percent increase from 2005 spending. Traditional media brands will account for 45 percent of total spending on Internet and mobile services by the end of this year, up from only 16 percent in 2000, the report found.

“Our research indicates that traditional media companies are aggressively pursuing online and mobile platforms, protecting their brands and developing new revenue streams,” James Rutherfurd, executive VP and managing director at VSS, said in a release. “If one word could describe the media business in 2006 it would be fragmentation … but traditional media companies have responded by investing in multiple media platforms to reach this increasingly fragmented audience.”