In a recent study, JupiterResearch found that advertisers will steadily increase more of their budget to the online advertising medium. They predict that between 2006 and 2011, the online spend will reach close to $26 billion, or almost 9% of the total U.S. advertising spend.
It is interesting to note that even this year huge companies have held back on the TV upfront to have flexibility in where they want to put their advertising dollars. The Internet is obviously one of those places.
At this time paid search is still the first choice of advertisers and the major pusher of growth in the online ad market. Last year it took over number one from display advertising. It is predicted that it will stay in that place at least for the next five years.
Emily Riley, JupiterResearch analyst and lead author of the report said, "The large increase in search advertising is due to new clients experimenting with search and advertisers competing for keyword placement, which drives up prices, additionally, as search advertisers mature, they start using longer lists of keywords, increasing their overall budget."
Another thing to keep in mind for our strategies is that rich media is forecast to grow at a 21% yearly rate through 2011 and video ad spend is projected to grow at a 27% clip (compound annual growth rate) according to the report.
Even though online is considered one platform of many by some, it looks like within the Internet medium itself we are experiencing, and will experience a continual fragmenting of the advertising platform to include a number of different ways to offer advertising to visitors.
Think of this when you arrange your Web site for the advertising model.
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