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September 22, 2009

Digital media to feed off declining traditional in 2010

Global online ad spending is expected to increase 11 percent to $65 billion next year, Adweek reports.

According to a study by WPP's GroupM, digital advertising in the U.S. is expected to rise 7 percent to $24.4 billion, earning a 17 percent share of total ad spending. Digital accounted for 15.4 percent of spending in 2009.

Most of the increase comes from search and video, but will also benefit from the severe decline in traditional media, particularly newspapers. Digital spending will represent 15 percent of all shared media globally, up 2 percent from this year.

With the increase in spending on search and mobile, analysts predict display's share of ad dollars will dwindle. Next year, display's share of digital spending will fall to 34 percent, down 1 percent from 2009. Worldwide display advertising, on the other hand, is expected to rise 12 percent to approximately $20 billion. Mobile advertising will ascend to $3.3 billion, which will account for 6 percent of all digital advertising.

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