Group M: Internet advertising expected to trend up

Worldwide marketing activity is experiencing a bounce back, reports mediaagency Group M.

Last year, Group M expected worldwide advertising revenue to grow 1 percent in 2010. Now, the agency has raised its projections to a 3.5 percent increase, with ad revenue predicted to reach almost $451 billion. It expects the industry to grow an additional 4.5 percent in 2011.

Domestic ad spending will continue to trail, though, with Group M predicting another U.S. decline of 1.3 percent in 2010, with revenue expected to drop to $145 billion. By 2011, the firm expects U.S. ad spend to increase by 2.5 percent, accounting for $149 billion of global advertising expenditures.

"The U.S media marketplace has clearly bottomed out earlier this year, and we expect moderate growth in 2011 consistent with GDP improvement," said Rino Scanzoni, chief investment officer of Group M. "Television and online spending will outpace other media, as they lead with return on investment metrics."

Internet advertising in particular continues to trend upward. Group M expects this sector to increase by 10 percent over 2009.

A recent report released by the Direct Marketing Association mirrors Group M's findings. According to the report, internet marketing platforms, such as social media, email and search, will see the biggest growth.