US Marketers Will Continue To Move Online
US marketers will continue to shift their spending into online advertising in 2007, according to a new report from eMarketer.
Total US ad spending will increase by 3.2% in 2007. With the exception of the online sector, the US advertising industry will be the same size in 2007 as it was in 2006.
The fastest-growing internet ad format is video, which will see spending surge by 89% in 2007.
In 2007, eMarketer forecasts that US advertisers will spend nearly $8.3 billion on paid search ads, $1.3 billion more than they did in 2006.
The US presidential elections and the summer Olympics will be behind increased online ad spending growth in 2008. A rise of 22% will bring the total to nearly $24 billion.
By 2011, US marketers are predicted to spend $36.5 billion on online advertising, about 10% of their total media budget.
Recent research from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) estimated that US internet advertising revenues for 2006 were $16.8 billion, a 34% increase over the previous record of $12.5 billion in 2005 (see 2006 US Internet Ad Revenues Increase).
In other research eMarketer said that online ad spend per user will increase to $88.28 this year and will inch close to the $100 per user mark in 2008 (see US Online AdSpend Per User To Increase).