US digital ad spending reaches tipping point

Digital advertising spending in the US will surpass newspaper ad spending for the first time this ye

Online marketing firm eMarketer estimated that online ad spending will grow 13.9 per cent in 2010 to $25.8bn while spending on newspaper ads will drop 8.2 per cent to $22.7bn.

More advertisers are opting to spend bigger budgets on digital media as they see more customers shifting towards the web, eMarketer chief executive Geoff Ramsey said in a company post.

Although the firm had noticed the trend earlier, it reached its tipping point this year, Ramsey said, while adding that the bad economy has actually accelerated the shift to digital advertising.

"Online ads -- especially search ads -- are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result," he added.

The report estimated that the total ad spending in the US will rise 3 per cent to $168.5bn in 2010. Spending on newspaper print ads will continue to decrease next year by 6 per cent to $21.4bn while total online ad spending will rise 10.5 per cent to $28.5bn, the report added.