Online advertising to grow 10% annually through 2010
JupiterResearch, a division of Jupitermedia Corp., forecasts that online display and search advertising spending will grow at an average annual rate of 10% between 2005 and 2010. The automotive and travel industries are projected to show the strongest growth over the next five years at an average of 24 percent and 13 percent, respectively. Other industries slated for impressive growth include the financial services, media and entertainment industries.
The report, titled "U.S. Category Advertising Forecast, 2005 to 2010," delves into what will drive online spending for top categories and how branding-focused categories are planning to spend on online advertising. According to the report, consumer packaged goods companies will commit 83% of their online budgets to display ads by 2010, while health brands will significantly increase their expenditures in search from 2005 to 2010. The study also shows that telecommunications, media and entertainment, and finance companies currently account for about half of all online display and search advertising spending.
Some tidbits from the report: "Marketers are increasingly looking for the efficiencies of online campaigns that are integrated with their off-line campaigns…Agencies that can devise and manage integrated campaigns stand to gain more from rising ad budgets," said David Schatsky, Senior Vice President of Research at JupiterResearch. "Agencies and publishers must educate themselves on how industry categories prioritize online advertising and tailor their pitches to different industries," said Zia Wigder, VP and Research Director at JupiterResearch.
The study also reveals that health and consumer packaged goods (CPG) companies are not big spenders online, but their focus on branding will drive them to different media to deliver their consumer messaging. CPGs will continue their focus on display advertising, dedicating 83% of their online advertising budgets to display ads in 2010. In contrast, health brands will increase their expenditures in search far more substantially from 2005 to 2010.
Sources:
http://www.jupiterresearch.com
http://www.infozine.com/news/
stories/op/storiesView/sid/11929/
http://www.btobonline.com/article.
cms?articleId=26424
