• by Wayne Friedman , June 25, 2007

TV just took another hit. In five years, Internet advertising will outpace traditional TV advertising growth by almost three to one. By 2011, Internet advertising will average 18.3% increases per year, climbing to $73 billion in five years. That's according to PricewaterhouseCoopers' just-released annual study, Global Entertainment and Media Outlook 2007-2011 forecast.

Traditional TV advertising will be less rosy--only climbing around 6% per year, hitting $228 billion in 2012. The TV network market climbed at about the same rate, 6.2% in 2006; there were 6.3% gains in 2003 and 2005.

Multichannel TV advertising will be the fastest-growing part of the TV business. High-definition television TV and new channels will also boost advertising on free-to-air channels. Worldwide TV advertising was $172 billion in 2006.

Internet advertising rose 37.9% in 2006 for the Internet worldwide. U.S. spending on Internet advertising and access will surpass spending on newspaper publishing in 2009, says PricewaterhouseCoopers.

Globally, PricewaterhouseCoopers says all advertising will increase at an average rate of 5.4% per year for the next five years--rising to $531 billion in 2011, from $407 billion in 2006. In five years, the Internet will comprise 14% of the worldwide advertising market, at some $73 billion. TV will comprise 43% of the worldwide advertising market.

Out-of-home will be the second-fastest-growing advertising medium, with an average growth rate of 6.5% per year.

The consultancy says the U.S. will be the largest market but the slowest-growing piece of the entertainment and media arena, only pegged to grow at a compound annual rate of 5.3%, reaching $754 billion in five years.

Asia Pacific will continue to be the fastest-growing region, posting double-digit increases in Internet, TV distribution, casino and other regulated gaming and video games. Spending in Asia Pacific will average 9.6% annual growth--the fastest of any region--increasing from $297 billion in 2006 to $470 billion in 2011.