US Online advertising will grow to represent 9% of overall advertising spend by 2011, according to the latest study from JupiterResearch, US Online Advertising Forecast, 2006 to 2011.
The study shows that online advertising in the US will reach $25.9 billion in revenues by 2011, rising at a compound annual growth rate (CAGR) of 11% over the next five years.
Search is predicted to be the driver of growth, increasing from 41% of all online ad spending, or $6.5 billion, in 2006, to comprise 43% of online ad spending, or $11.1 billion, by 2011.
JupiterResearch attributed the search rise to higher keyword prices, usage of larger keyword lists and new marketers entering search.
Last month, Piper Jaffray forecast that global search advertising sales will grow by an estimated 40% this year to $13.6 billion (see Search Advertising Sales To Reach $13.6 Billion In 2006).
US Online Advertising Forecast, 2006 to 2011 predicts that US Display advertising will reach $9.2 billion in 2011, while rich media spending is expected to climb at a 21% compounded annual growth rate (CAGR). Video expenditures are also forecast to increase, at a 27 percent CAGR, in 2011, with JupiterResearch saying that the broadband boom and advertiser’s comfort with the formats would drive the trends.
Recent research from from Leichtman Research Group (LRG) said that by the end of 2010 there will be over 105 million residential online subscribers in the US, with over 80% subscribing to broadband (see Over 105 Million US Residential Online Subscribers By 2010).
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