The online advertising market is poised to grow nearly $10 billion over the next six years, according to a forecast to be released at the Jupiter/ClickZ Advertising Forum Conference in New York tomorrow. The report says Internet advertising will increase from $6.6 billion in 2003 to $16.1 billion in 2009.
Further good news comes from Jupiter’s data revealing that an overall advertising recovery is underway, as the online ad growth does not come at the expense of the offline ad market.
“Offline spending is not decreasing. It’s still increasing but online is increasing faster,” said Nate Elliott, associate analyst, JupiterResearch (a unit of this site’s corporate parent).
“This is the year where we are seeing the market begin to mature and it is a great sign for the industry. The industry is very healthy,” said Elliott.
JupiterResearch is largely attributing the swell to rising ad prices. “The average CPM [define] on the Web is going up.which means the media is more in demand and more useful,” said Elliott.
Further fueling the movement to advertise on the Web is an increased sophistication about online advertising, along with widespread adoption of targeting technologies and accurate measurement and planning tools.
Compounded annually over the next two years, paid search is expected to grow 30 percent, while display ads and online classifieds will each grow more than 25 percent.
“The real story is that the market is growing in harmony. Search has carried the industry on its shoulder, and we are now seeing display and classified advertising growing at the same rate,” said Elliott.