The US online advertising market is forecast to reach $50.3 billion in revenue by 2011, more than double 2007’s revenue, according to a new report from Yankee Group.
The internet accounts for approximately 20% of overall media consumption in the US, said Yankee Group, but advertisers currently invest only 7.5% of their budget online.
It predicts that by 2011, nearly 25% of all media consumption will be online, drawing 15% of the advertising dollars.
Daniel Taylor, author of the report and senior analyst at Yankee Group, said: “With internet connectivity nearly ubiquitous, online advertising growth is inevitable.
“And yet the internet is still a relatively new digital medium. Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development.”
The Long Term Advertising Expenditure Forecast, compiled by the World Advertising Research Center (WARC) on behalf of the Advertising Association (AA), recently forecast that online will be the dominant force behind adspend growth over the next 12 years (see UK Adspend Could Grow 38% By 2019).
The report said that in terms of display advertising, the internet is expected to increase its 3.9% share of the market achieved in 2006 to 12% in 2019.
An eMarketer forecast released at the start of the year predicted that UK online ad spending will pass £3 billion in 2008 (see UK Online Adspend To Pass £3bn In 2008).
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