Report: Online Advertising To Exceed $106B by 2011
ADOTAS – Spending on Internet advertising worldwide is projected to total $65.2 billion in 2008, representing almost 10% of all ad spending, according to IDC. The IDC’s Digital Marketplace Model and Forecast is also projecting 15-20% in annual growth throughout the forecast period. (The share will reach 13.6% by 2011 as Internet ad spending grows to $106.6 billion worldwide.)
The U.S. will lead the world in both total ad spend and online ad spend, with projected expenditures of more than $265 billion and $45 billion by 2011, but Central and Eastern Europe, the Middle East and Africa will experience the fastest growth in online ad spend. This year, more than $5 billion will be spent worldwide this year in each of the top four categories of online ads (adult content and gambling, information, electronics and computing).
“Compared to more mature types of advertising, Internet advertising is growing at a phenomenal rate,” said John Gantz, chief research officer at IDC. “But Internet advertising is still relatively new and growing from a much smaller base. By the end of the forecast period, spending for Internet advertising will trail direct mail – the third largest form of advertising – by more than $30 billion, while spending on TV and print ads will each be nearly twice as great as for online ads. The long-term opportunity for Internet advertising can be seen in the disparity between per capita spending. Total advertising revenues equate to more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user.”
Keyword ads will remain the dominant type of Internet advertising throughout the forecast period, capturing more than one-third of annual online ad spending worldwide, IDC said. Display ads will be the next largest type of Internet advertising, capturing more than 20% of worldwide spending annually through 2011, followed by classified ads with nearly 19% of all online ad spending per year. Spending in both categories will be pressured by rich media ads, which are expected to grow at a compound annual growth rate (CAGR) of more than 50% during the 2007-2011 forecast period.
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