Rollin’ In Dough: 35.4B Ad Bucks By 2012
According to a report by JupiterResearch, projections of online ad spending are predicted to nearly double by the year 2012. Total U.S. ad spending is anticipated to grow from $19.9 billion in 2007 to $35.4 billion in 2012.
The explosive growth of social networks will provide a valuable space for online advertising by creating an abundant availability of inventory. Currently, advertising on social networks is based on context, but with time and more ad dollars advertisers can refine promotional tactics. JupiterResearch analyst Emily Riley said in a statement, “Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory.”
Two-thirds of online display revenue will still be attributed to static images and text ads presented on social networks, however newer publishers are anticipated to progress the trend towards rich media advertising.
David Schatsky, President of JupiterKagan reported, “This is a time of considerable opportunity for online media properties, interactive advertising agencies, and marketers. Making the most of the opportunity, though, requires tracking evolving consumer behavior closely, employing appropriate targeting and measurement technologies, and a willingness to experiment with evolving formats and tactics.”
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