Online Advertising Reaches $50B by 2011


losingmoney.jpgA new report out by the Yankee Group entitled “The Cowboys Dance On and On: 2007 Online Advertising Forecast” projects that the U.S. online ad market will climb to $50.3 billion in revenue by the year 2011. This would more than double 2007’s revenue.

Currently, the Internet makes up 20% of overall media consumption in the U.S., yet advertisers only invest 7.5% of their budgets into online ads, reports WebProNews. It is estimated that by 2011, about 25% of all media consumption will be online and that would warrant 15% of the ad spend.

The report says that the increase in growth will come from the development of new and interactive types of advertising. However, online advertisers continue to stay behind traditional media when it comes to ad budgets.

Report author and senior analyst at Yankee Group Daniel Taylor was quoted in WebProNews to say “With internet connectivity nearly ubiquitous, online advertising growth is inevitable. And yet the Internet is still a relatively new digital medium. Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development.”



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