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Summary:

Strong demand for U.S. display advertising, especially video and banner ads, is helping pump up projections for the overall online advertising market, which is now set to grow by 20 percent this year to $31.3 billion, according to revised estimates from eMarketer.

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Strong demand for U.S. display advertising is helping pump up projections for the overall online advertising market, which is now set to grow by 20 percent this year to $31.3 billion, according to new estimates from eMarketer. The firm updated a previous estimate of 10 percent growth for 2011, largely on the strength of display advertising which is now poised to overtake search advertising within five years.

EMarketer said search advertising will grow by 19.8 percent this year to $14.4 billion, outpaced by online display ads, which will grow 24.5 percent to $12.3 billion.  Increased video and banner ads are fueling the growth of display advertising with video ads expected to pull in $2.2 billion this year and banner ads estimated to get $7.6 billion.

Overall, online advertising is expected to account for almost 20 of all major media ad buying this year, up from 17 percent last year and by 2015, online ads will represent 28 percent of all U.S. media ad spending. Online advertising is creeping up on TV, which is expected to hover at 38 percent for the coming years.

Online advertising grew to $26 billion last year, a 14.9 percent increase over 2009. It eclipsed newspaper advertising for the first time to move into second place in market share. And with this latest projection, it looks like the good times are only getting better for online publishers, who can expect to get more dollars as advertising continues to migrate online.

  1. Since the marketers have realized that people are getting more into online for their requirements, online advertisements thus is increasing in order to increase the business

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  2. The key here would be how the conversions pan out. ALthough traffic on the web is increasing, and more and more people are now making purchases using the web, it is how marketers are going to persuade consumers to purchase the products. More advertising is not necessarily going to increase revenue.

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