Compiler of Internet trend forecasts, eMarketer.com, estimates that while US online advertising spend has risen by more than 30% each year for the past three, the 2007 increase will be just 19%. Not that that's bad... but it's certainly a change of pace.
The theory is born out by Internet media and MR firm, Piper Jaffray & Co, which predicts that global online advertising revenue will reach $81.1 billion by 2011, representing a 21% compound-annual-growth-rate.
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eMarketer suggests that the knock-on effect of the expected fall in US economic growth will force advertisers to cut their 2007 advertising budgets accordingly. However, the firm's analysts calculate that online ad spending will not experience negative growth for the near future, and the 18.9% growth anticipated this year will overtake all other forms of media spend.
Most researchers expect online ad spending to increase each year until 2011, after which five firms — Borrell Associates, Forrester Research, JupiterResearch, Oppenheimer and PricewaterhouseCoopers — forecast that increased annual growth will slip into single figures for the first time since Internet advertising was born in the 1990s.
However, eMarketer expects annual growth to fall to 13% by the end of 2011. According to the firm's Senior Analyst, David Hallerman, this is based on three premises:
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.
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