Thursday, May 20, 2010

Internet Advertising Records 50 percent Growth

Ad spending on Internet in Pakistan grew by 50 percent in 2009 as compared to previous year, said Syed Sarmad Ali, Marketing Chief of Jang Group of Newspapers in an interview with Business Recorder.
He said that only medium that is growing now is Internet. However, the total size of Internet advertising revenues is too small to be counted or to make an impact on other mediums.
Sarmad notes that total revenues of Internet advertising is less than 1 percent of total advertising spend in the country.
Total size of Pakistani advertising industry is Rs. 30 billion or USD 350 million a year, revealed Syed Sarmad Ali.
Sarmad said that Pakistani advertising industry flourished between 2002 to 2007, after the emergence of private TV channels, prior to which Pakistan had only one state-owned television channel.
Unlike US and Europe, where newspaper readership has declined notably, newspapers in Pakistan have witnessed 15 to 20 percent growth in revenues from 2002 to 2007. He said that the impact of Internet and other devices that get you news in soft form are clearly impacting media companies in United States and Europe. However, situation in Asia, Middle East and Africa is different where newspapers are still earning through adverts and circulation.
With exception of one or two media groups, advertising revenues of media companies have come down by large during last two years. Of which, newspapers are effected more than any other media, while TV channels’ revenues also faced the impact.
Via Business Recorder

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