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.