Online Ad Spend to Climb Through 2010

Online advertising continues to grow. A forecast from JupiterResearch says online ad spending will reach $18.9 billion in 2010, double 2004’s expenditure.

Each category of Internet advertising will see growth. Display will increase by seven percent in five years; classifieds will grow about 10 percent to $4.1 billion; and rich and streaming media spending will grow to nearly $4.5 billion by 2010.

The forecast said search engine advertising will generate more revenue than standard display advertising by 2010. But David Card, VP and research director at JupiterResearch, doesn’t expect advertising in search to rob budgets from other categories. “I think a lot of it is incremental spending, there’s a lot of talk that people are shifting TV budgets, but that’s not search. If anything, it’s coming from direct marketing budgets,” said Card. “[Search has] really proven itself as cost effective, measurable direct marketing,”

Findings from the 2005 Online Advertising Forecast report were presented this week at the Search Engine Strategies Conference & Expo 2005.

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