Online Ad Spending to Grow 11%, Branded Campaigns Still Going Strong
This will be a good year for online ad spending, according to eMarketer, which expects 11 percent growth this year. Video will see the biggest growth of all formats, according to the company.
Online ad spending in the U.S. will reach $25.1 billion in 2010, according to a revised eMarketer forecast, which would mark a 10.8 percent increase from 2009, which saw $22.7 billion in online ad spending.
Back in December, eMarketer released a forecast of 5.5 percent growth, but resilient search and banner markets along with “the rush among advertisers for greater accountability in the still-soft economy” was reason enough for the revision, according to MediaPost.
This figure is expected to grow 8.4 percent to $27.2 billion in 2011, and will reach $36.3 billion by 2014, according to eMarketer.
David Hallerman, senior analyst for eMarketer, pointed to Google’s 21 percent jump in net U.S. ad revenues in the first quarter as a “key signal that the tide was turning.”
Video will grow 48.1 percent in 2010, the most of any ad format, followed by search with a 15.7 percent growth in the cards and banner ads with an 8.2 percent growth expected this year.
Meanwhile, lead generation is expected to grow 5.5 percent, sponsorships are forecasted to grow 4.9 percent, rich media is set to rise 4.7 percent, e-mail is slated to decline 5.4 percent and classifieds are expected to shrink 13.1 percent in 2010.
This ranking by expected annual growth should hold fairly steady through 2014, according to eMarketer.
According to the IAB and PricewaterhouseCoopers, U.S. online ad spending grew 7.5 percent year-over-year in the first quarter. This rate is expected to rise to 11.4 percent in the second quarter, 11.8 percent in the third quarter and 12.3 percent in the fourth quarter of 2010.
Hallerman highlighted the visible importance for brand marketers to leave their stamp online, pointing out that although Yahoo!’s overall net U.S. ad revenues fell 4.5 percent in the first quarter, display ad revenue grew 11.7 percent.
Razorfish recently noted that 60 percent of its clients that adjusted their approaches this year moved to a more brand-focused message, which is unexpected during recessions, when companies tend to favor ROI-driven efforts.
“Clients didn’t have any real giant pendulum swings, they pretty much stayed the course and kept the strategies that they had used prior to the recession,” said Jeremy Lockhorn, vice president of emerging media for Razorfish. “We would have expected the opposite to have occurred.”
Sources:
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=128759
