ADOTAS – Search, banners, e-mail and lead generation have been responsible for the explosive growth in interactive advertising to date, but that’s about to change according to a new report. The Kelsey Group, an online advertising research group, says that verticals will emerge as a key driver of online advertising by 2012.
The group based its findings on trend analysis, and said the vertical share of interactive advertising will grow from 18% in 2007 to 24% in 2012. Revenues for interactive classifieds and verticals will mushroom from $3.9 billion to about $14.7 billion in the same period, representing a 30.5% compound annual growth rate.
“Vertical businesses are harnessing the network effects of the Internet, much like Expedia and others did for travel in the late 1990s,” said Kelsey Group Program Director Peter Krasilovsky, cochair of conference “Drilling Down on Local ‘08,” where media executives will gather in Seattle to discuss the findings. “We’re seeing an accelerated effect from fragmentation, which will draw ad revenue from traditional media toward online vertically targeted solutions.”
The Kelsey Group was founded in 1986; it analyzes the emerging local search marketplace and provides advisory services.