Display, Search Advertising Expected to Grow by Double Digits in 2010

The U.S. online advertising industry is expected to fare well in 2010 despite lingering effects of the recession, according to J.P. Morgan's "2010 Internet Industry Outlook." The report projects that $8.3 billion will be spent on display ads this year—an increase of 10.5 percent over 2009. Much of this growth will be attributable to a 45-percent uptick in mobile ads. The projected growth in display advertising in 2010 follows a decrease in 2009 spending by 5.2 percent.

Search advertising is likely to see even better results. J.P. Morgan is forecasting a 13-percent increase to $16.5 billion this year.

Spending on mobile ads will increase to $3.8 billion in 2010, with the bulk of those expenditures the result of mobile text-message advertising.