US online adspend forecast to grow 11% this year
eMarketer is forecasting 11% US online adspend growth in 2010, after a drop of 3.4% last year.
US online adspend will reach $25.1 billion, up from $22.7 billion, said eMarketer. Its previous prediction, in December 2009, was for 5.5% growth.
The online research firm said that “a stronger than expected search and banner market, along with the rush among advertisers for greater accountability in the still-soft economy” led to the revision.
David Hallerman, eMarketer senior analyst. said: “As Google makes gains, so does a large slice of online advertising.
“When Google reported a 21% jump in net US ad revenues for Q1 2010 – compared with a mere 5.3% gain in last year’s Q1 – that was a key signal that the tide was turning.”
The search market will be up 15.7% year over year to almost $12.4 billion, said eMarketer, while spending on banner ads will increase 8.2%.
Video will again post the highest growth rate, rising 48.1% to $1.5 billion.
US internet advertising revenues hit $5.9 billion for the first quarter of 2010, up 7.5% year on year, according to new figures from the Interactive Advertising Bureau and PricewaterhouseCoopers.
This marks the highest first-quarter revenue level ever for the industry.