Online ad spend will reach $15.7 billion in the US this year and $25.9 billion by 2011, according to a new study from JupiterResearch.
Search is forecast to dominate internet ad spend over the coming years, with search spending for this year projected to total $6.5 billion, or 41.4% of total online ad spending.
In addition, display advertising is forecast to reach $5.8 billion, or 36.9% of total online ad spending, while classified advertising spending will total $3.4 billion, or 21.7%.
By 2011, search ad spending will reach $11.1 billion, or 42.9% of total online ad spending. Display advertising will total $9.2 billion in 2011 (35.5% of total online spending), and online classified advertising will reach $5.6 billion (21.6%).
Jupiter also says that advertisers will spend $400 million on online video ads this year and $1.3 billion by 2011, and will spend $1.4 billion on rich media ads this year and $3.6 billion in 2011.
Meanwhile, Jupiter forecasts that total online advertising will grow at a compound annual rate of 11% from 2006 to 2011.
A recent report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) showed that internet advertising revenues reached a record $3.9 billion in the first quarter of 2006 (see Online Adspend Almost $4 Billion In Q1), whilst a report from Initiative said that internet adspend will continue to outperform other media in Europe this year, with minimal growth expected to be the norm (see Internet Adspend Likely To Grow For 2006).
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