New media advertising is set to boom over the next few years, despite its rocky fortunes in the last 18 months. Market researchers Allegra Strategies forecast that while the difficult market will mean a downturn this year, the average rate of growth for the next few years for new media ad revenues will be 51.8% per annum, expanding the sector’s share of total UK revenue to 6.7%, or £1.3bn by 2005.
Within this, online advertising is expected to show a 26.3% p/a growth rate so that by 2005 its share of UK ad revenue will have grown to 2.4%
Allegra surveyed advertisers and found that 66.1% expect to increase their online spending over the next 2-3 years. Meanwhile, a survey of internet users found that 70.9% could remember and name at least one online advert, while 40% could remember 3 or more.
