Digital Ads Expected to Hit $23B by 2010

  |  February 21, 2006   |  Comments

As audience shifts from mass media to niche content, Parks Associates sees digital media grabbing 10 percent of ad spending.

A new report from analyst firm Parks Associates forecasts across-the-board growth in digital media segments. New categories like in-game advertising and mobile will show the highest gains, according to the study, likely because they're starting from a lower base.

"Advertising in the Digital Age: Challenges and Opportunities," gives a five-year breakdown of digital advertising spending across Internet display, search, rich media, DVR, in-game and mobile advertising. Overall, the firm expects digital media to grab 10 percent of overall ad spending, or $23.5 billion, by 2010. Last year, the company said, digital media captured just 5 percent of ad spending, or $9.45 billion.

The Internet display ad category is expected to grow at a four percent compounded annual growth rate to $2.4 billion by 2010. By contrast, JupiterResearch's much rosier prediction for display ads forecasts $7.2 billion by 2010. During the same period, Parks Associates sees search experiencing a 14 percent compounded annual growth rate to reach $9.7 billion. JupiterResearch's forecast places search at $7.5 billion in revenues in 2010.

The report discusses how media is moving from mass to niche, leaving advertisers to adapt to new content and ad formats. "We believe that advertising over the next five years will go through some changes," said Parks Associates Research Analyst Harry Wang in a Webcast presentation of the report. "For content providers as well as media publishers, they have to provide content in a form that the audience prefers."

Emerging categories like rich media, in-game, and mobile advertising will show the most growth, according to the report. Internet rich-media ads are expected to experience a 31 percent compounded annual growth rate by 2010. The format will bring in an estimated $5.7 billion. In-game advertising will grow by at least 50 percent annually to $432 million. Advertising on a mobile platform is due to reach $2 billion.

Please take the time to participate in ClickZ's short reader survey, which will be live until March 3. To thank you for your participation, ClickZ will make a donation to charity on your behalf for every survey completed. Details of the charities you can nominate are provided at the end of the questionnaire.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...