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Boom in Online Ad Spend
Online advertising spend will more than double over the next five years, according to a new forecast by JupiterResearch. Jupiter sees the market growing from $6.6 billion in 2003 to $16.1 billion in 2009.
Paid search is seeing rapid increases - it will grow 30% compounded annually over the next two years, according to Jupiter - but display ads and online classifieds are now playing a major role also, with each forecast to grow more than 25% compounded annually over the same period.
Jupiter suggests that one reason for the growth is the more powerful tool set available to advertisers, who are now better able to target, measure and convert their audiences online, giving them the confidence to allocate more of their advertising dollars to the Internet and 'a willingness to pay more for premium online inventory as it becomes scarce'.
Gary Stein, Senior Analyst at JupiterResearch says Web sites and technology providers have worked hard over the last two years to make the medium more attractive for advertisers. 'With targeting technologies, the discovery of search by major advertisers, and real measurement and planning tools, the Internet is ready to fulfil its early promises of effectiveness, reach and trackability'.
JupiterResearch's web site is at www.jupiterresearch.com
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