New projections out today from eMarketer show that 2004 is likely to be another boom year for US online advertising, with spending expected to increase by 28.8% year-on-year to $9.4 billion, while 2005 is predicted to climb by 21%.
Paid search, which accounts for 42% of the market, is also expected to grow significantly over the next year, to reach $3.9 billion this year and $4.6 billion in 2005. While the remaining 58% of the spending pie is expected to grow by 14.9%.
Senior analyst, David Hallerman said: “Though paid search is one of the biggest drivers, accounting for 42% of the market this year, spending on other forms of online advertising including display ads and rich media will also increase significantly.”
He added: “Any medium would be doing cartwheels over that kind of growth. Paid search is the star this year again, but it’s the industry as a whole that is really hitting its stride.”
According to Jupiter Research, online advertising in the US is set to nearly double to $16.1 billion by 2009 but not at the expense of traditional advertising medium (see US Online Advertising Set To Double By 2009).
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