Online Adspend To Increase
Online research firm eMarketer estimates that online ad spending will reach $36.5 billion in 2011.
Emarketer says that at varying points over the next three years, Forrester Research, JupiterResearch, Oppenheimer, PricewaterhouseCoopersn and Borrell Associates actually see positive growth slipping into single digits for the first time since the dawn of internet advertising in the 1990s.
| Comparative Estimates: US Online Advertising Spending, 2005-2011 (Billions) | |||||||
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Borrell Associates, May 2006 | $17.5 | $20.3 | $22.4 | $23.6 | $23.3 | $21.4 | n/a |
| Citigroup Investment Research, March 2006 | $12.4 | $15.3 | $18.5 | n/a | n/a | n/a | n/a |
| eMarketer, February 2007 | $12.5 | $16.4 | $19.5 | $23.8 | $28.1 | $32.3 | $36.5 |
| Forrester Research*, May 2005 | $14.7 | $17.4 | $19.9 | $22.0 | $24.1 | $26.1 | n/a |
| GroupM**, July 2006 | $8.3 | $10.1 | $11.5 | n/a | n/a | n/a | n/a |
| JMP Securities, December 2005 | $13.2 | $17.6 | $22.1 | $26.5 | $31.1 | $35.9 | n/a |
| JP Morgan, January 2005 | $12.5 | $15.1 | $17.9 | $20.8 | $23.8 | n/a | n/a |
| JupiterResearch, July 2006 | $12.9 | $15.7 | $17.7 | $19.7 | $21.6 | $23.6 | $25.9 |
| Kagen Research, February 2006 | $11.9 | $14.5 | $17.5 | n/a | n/a | n/a | n/a |
| The Kelsey Group, February 2005 | $10.1 | $12.7 | $15.8 | $19.0 | $22.8 | n/a | n/a |
| Morgan Stanley, October 2006 | $12.5 | $16.0 | $19.7 | $23.8 | $27.9 | $31.8 | n/a |
| Myers Publishing, November 2006 | $11.1 | $13.9 | $16.7 | n/a | n/a | n/a | n/a |
| Oppenheimer & Co, January 2007 | $15.4 | $19.6 | $21.8 | $23.6 | $25.7 | $27.8 | n/a |
| Piper Jaffray, December 2005 | $13.9 | $18.6 | $23.2 | $28.1 | $32.7 | $37.2 | $41.1 |
| PricewaterhouseCoopers, June 2006 | $12.5 | $15.6 | $18.5 | $21.3 | $23.5 | $25.5 | n/a |
| SG Owen, December 2005 | $12.5 | $15.7 | $19.1 | $22.6 | $26.1 | $29.7 | n/a |
| Thomas Weisel Partners, January 2006 | $13.1 | $16.7 | $19.8 | $22.8 | n/a | n/a | n/a |
| TNS Media Intelligence**, January 2006 | $8.3 | $9.4 | $10.7 | n/a | n/a | n/a | n/a |
| Universal McCann**, December 2006 | $7.8 | $9.3 | $10.7 | n/a | n/a | n/a | n/a |
| Veronis Suhler Stevenson, September 2006 | $17.6 | $22.3 | $27.5 | $33.1 | $38.6 | $44.0 | n/a |
| Note: eMarketer benchmarks its US online advertising spending projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full year measured was 2005; online ad data includes categories as defined by the IAB/PwC benchmark – display ads (such as banners) paid search ads (including contextual text links), rich media (including video), classified ads, sponsorships, referrals/lead generation, e-mail (embedded ads only) and slotting fees; *includes e-mail marketing along with media spending; **does not include paid search spending. | |||||||
| Source: eMarketer; various, as noted, 2005-2007 | |||||||
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).
Meanwhile, a report from Borrell Associates predicted that US local online video advertising will grow from $161 million in 2006 to $371 million in 2007 (see US Local Online Video Revenues To Grow).