US Net Advertising On The Up Curve
After two years of negative growth, the US online advertising sector is set to undergo a minor revival in 2003, according to new forecasts from eMarketer.
It is estimated that total revenue from internet advertising will increase by 5% to $6.7 billion next year. This, say analysts, is a reflection of the stabilising economic situation and the fact that traditional marketers are beginning to recognise the merits of online ads.
Online advertising is expected to experience continued growth through 2005 although spending will still fall short of the $8.23 billion recorded in 2000.
Nonetheless, these latest projections represent a further boost to the internet economy following the encouraging noises made by the Online Publishers Association which has just announced a third-quarter increase in revenues (see Web Publishers Buoyed By 3Q Revenue Increase).
| US Online Advertising Spending | ||
| Year | Spend ($ billion) | % Growth |
| 2000A | 8.23 | – |
| 2001A | 7.21 | -12.3 |
| 2002F | 6.38 | -11.5 |
| 2003F | 6.70 | 5.0 |
| 2004F | 7.20 | 7.5 |
| 2005F | 8.10 | 12.5 |
| Source: eMarketer, November 2002 | ||
