Remarkable Growth of US Internet AD Business Despite Sluggish Economy
As per IDC report, Internet advertising will grow about 3.5 times as fast as advertising overall over the next five years. IDC also said the Internet in US will go from the No. 5 advertising medium all the way to No. 2 in just five years, making it bigger than newspapers, cable TV and broadcast TV, and second only to direct marketing.
From now until 2012, Internet advertising will grow about three-and-a-half times as fast as advertising at large, and IDC said it thinks overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012.
Search advertising will continue to generate the most revenue over the forecast period in the United States, IDC said. This means that for any media company, search must remain a key part of its strategy for attracting ad dollars, despite Google’s current dominance of the market, the analyst firm said. Google has about a 70% share of the search advertising market.
“What will also drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly also where they want,” Karsten Weide, IDC’s program director for digital media and entertainment, said in a statement.
With highly optimistic reports like these about the expected continued growth in online ad spending, the sense of urgency likely grows among companies like Microsoft, AOL and Yahoo, all of which have so far failed to capitalize as much their investors and executives have expected on online advertising’s growth in recent years.
Source: InformationWeek
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