Report: Online To Grab 9% of US Ad Market By 2011
According to a report by JupiterResearch, subsidiary of JupiterKagan, advertisers will increase their online ad budgets in the US, hitting $25.9 billion by 2011, nearly 9% of all US advertising. Jupiter attributes the majority of growth to paid search listings. Paid search beat out display advertising in 2005, and Jupiter says it will continue to make up the largest online ad segment for 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 Jupiter analyst Emily Riley in a statement, “as search advertisers mature, they start using longer lists of keywords, increasing their overall budget.”
Search ads exceeded expectations last year by jumping 40%. Jupiter expects the market to grow another 21% by the end of 2006. Jupiter also sees an increase in the amount of spending in the online classifieds market and rich media. According to JupiterKagan president David Schatsky, spending on dynamic forms of display advertising like rich media and video will grow quickly, but wont overtake search advertising. It will instead begin replace static display advertising.
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