Kelsey: U.S. Interactive Ad Revenues to Hit $62.4 Billion by 2012

  |  February 25, 2008   |  Comments

Annual report forecasts global boom in Web ad services start-ups.

Interactive advertising in the U.S. will grow from $22.5 billion in revenues in 2007 to $62.4 billion by 2012, according to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising," released today.

Kelsey analysts expect the U.S. market to see 22.6 percent compound annual growth rate for interactive advertising, including search, local search, display advertising, online classifieds and other interactive ad products.

The report also predicts global interactive ad revenues will reach $147 billion U.S. by 2012, up from $45 billion U.S. in 2007, rising at a compound annual growth rate of 23.4 percent. Interactive advertising grew in the global market from 6.1 percent in 2006 to 7.4 percent in 2007. Kelsey analysts predict interactive's share of global ad spending will grow by 23 percent and eventually reach 21 percent of the total ad spend by 2012. The report states that the overall worldwide advertising market grew to over $600 billion U.S. in 2007, and is expected to continue growing to $707 billion in five years.

Matt Booth, SVP interactive local media for Kelsey, also predicted a boom in the number of companies that will try to take advantage of the increase of interactive marketing's percentage of the global advertising budget.

"Growing from 7.1 percent to 21 percent is a lot. We're saying that there will be a big shift to digital advertising markets," he said. "The global shift to digital products will be the most interesting and we'll see what kind of global company start-ups will go after that acceleration of dollars moving to digital products."

The growth of online advertising will come at the expense of print and newspaper advertising, which has been an ongoing trend, according to Booth.

"Globally the print newspaper business will decline... 5.8 percent per year across the board. Most of the growth in digital is going to come from print decline," said Booth. "[Particularly] Yellow Pages print declines, which are smaller, and newspapers which make the largest share drop in our forecast."

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

Matthew G. Nelson

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...