This is both a result of the increase in internet usage (up 14%) as well as a decrease in newspaper readers (down 8%).
It’s important to note why this change is occurring…marketers are going where the people are. As more newspaper readers migrate to the internet, the ads follow them. And why wouldn’t they when it’s a lot more effective to run and track ads online compared to newspapers.
I expect to see an more intense increase in advertising competition which is why it will be particularly important to go after more organic modes of internet advertising like social media, Google local, seo, and mobile marketing (where the competition is lighter due to it’s freshness).
Takeaway: Look out for yet another increase in ads competition in 2011, and position yourself to have a well diversified strategy online that doesn’t wholly rely on ads. I don’t think we even know what ad overload is yet