Online advertising booming
Published: 09 Aug 2005 09:05 BST
The next five years will witness steady growth in online advertising, with sales more than doubling from their 2004 levels, according to a new study from Jupiter Research.
Sales will reach $18.9bn (£10.6bn) by 2010, the company said Monday, up from $9.3bn at the end of 2004.
Leading the surge will be search engine marketing, which is expected to increase at a compound annual growth rate of 12 percent, the research company said.
Sales of display ads, meanwhile, will increase at a compound annual growth rate of 7 percent, the market researcher said.
Classified advertising is also poised to grow, according to Jupiter. That sector is expected to have a compound annual growth rate of 10 percent, with revenue of $4.1bn in 2010.
Advertisers will be capitalizing on the growing number of broadband-connected homes by spending on rich-media and streaming-media ads, Jupiter said. Rich-media spending will rise at a 25 percent compound annual growth rate to $3.5bn, the company said, while streaming-media revenue will rise at a 30 percent compound annual growth rate to $943m.
Also adding to Web publishers' revenue will be direct sales and network revenue-sharing deals.
"Publishers are in a good position right now," David Card, a research director with Jupiter, said in a statement. "Not only can they monetise their non-premium inventory, but they can strategically choose the network providers they feel can generate the most yield from that inventory."
Other research has also pointed to strong online-advertising revenue. In the first quarter of 2005, Web ad sales climbed to $2.8bn, a 26 percent boost from same period in 2004, according to an earlier report from Interactive Advertising Bureau and PricewaterhouseCoopers.
Further, Forrester Research predicted recently that online advertising would jump to $14.7bn in 2005 — which would be an increase of 23 percent over 2004.
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