Online Advertising Will Represent Almost 9% of Total US Advertising Market by 2011
Wednesday, 26 July 2006
JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, finds that advertisers will continue to increase the share of total budget spent online between 2006 and 2011, with the market reaching $25.9 billion or almost nine percent of total US advertising spending in 2011.
According to a new report by JupiterResearch, "US Online Advertising Forecast, 2005 to 2011," paid search is the primary driver of growth in the online advertising market. Search advertising overtook display advertising in 2005 and will continue to be the largest online advertising component over the next five years.
"The large increase in search advertising is due to new clients experimenting with search and advertisers competing for keyword placement, which drives up prices," said Emily Riley, JupiterResearch Analyst and lead author of the report. "Additionally, as search advertisers mature, they start using longer lists of keywords, increasing their overall budget."
Current online advertising spending is outperforming previous expectations, jumping 40 percent in 2005 and projected to grow 21 percent in 2006. In addition to paid search, large spending increases for online classifieds and rich media are fueling the market, which will continue to grow at a brisk pace over the next five years.
"While online display advertising spending will not be as large as search spending, several subsections of display advertising, such as rich media and video, will grow rapidly," said David Schatsky, President of JupiterKagan. "However, high growth for these forms of new online advertising will begin to cannibalize static display advertising."
The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology, please visit: http://www.jupiterresearch.com/bin/item.pl/methodology. For additional information on this report or JupiterResearch's Advertising & Branding research services, visit www.jupiterresearch.com.