Online advertising networks account for one in five display ad buys, with advertising revenues for the medium predicted to rise to £57.1 million in 2005, up from the £41.7 million generated in 2004.
According to a new report from internet marketing publisher, E-consultancy, online advertising networks will enjoy significant double-digit growth during 2005, as the marketing sector becomes comfortable with their benefits.
Ad network’s offer greater reach for less outlay, helping publishers sell unused inventory, while allowing advertisers to buy ads across multiple sites at discounted rates,
The consensus view is that online advertising networks will increase revenues by 37% in 2005, to £57.1 million, outpacing growth in online display advertising, which E-consultancy estimates at 32% for 2005.
Commenting on the findings, Ashley Friedlein, chief executive officer of E-consultancy said: “Online advertising networks are claiming an ever-larger slice of online marketing spend. Many advertisers might not be too familiar with the benefits offered by networks.”
He added: “We hope that this report will educate the market. There is a large capacity for sustained growth in the future.”
Online advertising expenditure is forecast to hit $18.9 billion by 2010, up 59% from $11.9 billion this year, according to the latest estimates from Jupiter Research (see Online Adspend To Hit $18.9 Billion By 2010).
Financial services company, Goldman Sachs, has predicted 2005 to be a bullish year for online advertising, forecasting the market to increase by 28% year on year, to reach $12.3 billion (see Goldman Sachs Predicts Online Adspend To Rise By 28% In 2005).
Forecasts released earlier this month by Forrester Research are more optimistic than Goldman Sachs, predicting online adspend to reach $14.7 billion this year, a 23% increase on its 2004 estimates (see US Online Ad and Marketing Spend To Reach $14.7 Billion in 2005).
Analyst eMarketer’s predictions are closer to Goldman Sachs’, projecting online advertising to hit $12.9 billion in 2005, a 34% rise on eMarketer’s 2004 forecast (see Online Adspend To Hit $13 Billion In 2005).
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