Online ad revenue to grow 10% this year

Online advertising revenue and is expected to increase by 10% in 2011, according to S&P Equity Research.

If S&P’s latest forecast is right, total online ad revenues will grow from $25.8 billion in 2010 to just under $28.4 billion in 2011 (combined with a separate 2010 estimate from eMarketer).

In December, eMarketer upgraded its US online ad forecast for 2010 to 13.9% ($25.8 billion).  Next year, the group predicts a 10.5% increase, followed by double-digit growth every year through to 2014 (when spending will reach $40.5 billion).

S&P also predicts that online retail spending will rise by 10% this year, with Amazon.com expected to enjoy more than 25% growth.

Other predictions for 2011 include a significant sale or acquisition for Yahoo!, more regulatory and legal problems for search giant Google and more freedom for Apple’s iTunes users.

Read the full MediaPost article here.