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NEWS : Full Story

Newsletter #208 (View other news stories)

Forrester: USD26 billion online ad market/year by 2010

SYDNEY, Australia
Thursday, 12 May 2005

Advertisers are increasing internet advertisement spending, with nearly half cutting spending on traditional media to do so, says a new Forrester Research Inc survey.

Nearly 85 per cent of advertisers plan to increase their online ad budgets this year, with increases averaging 25 per cent, according to the Forrester report.

More than 40 per cent of advertisers are cutting spending on traditional ad media, like magazines, newspapers and direct mail, to fund the online increase.

The report is based on surveys of 99 US-based national advertisers who buy online ads. Forrester also surveyed internet-related companies.

Forrester forecasted the online ad market would grow to USD26 billion annually by 2010, more than double last year’s USD12 billion. The report follows blowout earnings from Google Inc and other internet companies dependent on ads.

Forrester’s survey showed 47 per cent of those surveyed said they were increasing online ads by boosting their overall budgets while 43 per cent said they were cutting spending on other marketing outlets, with magazines, direct mail, and newspapers most commonly cited.

A trade group has reported the US online ad market in 2004 exceeded its 2000 size for the first time since the dot-com bust. The Interactive Advertising Bureau said US online ad revenue totalled USD9.6 billion in 2004, exceeding the USD7.3 billion reported a year earlier and the previous record of USD8.1 billion in 2000.

• Article from industrySearch.com.au®, an Australian online information portal for the manufacturing industry.

For more information:
www.industrysearch.com.au

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