Online Ad Spending to Soar to $42 Billion by 2011
A new report, released Wednesday by digital marketing and media research firm eMarketer, says that advertisers are on their way to spending $21.4 billion in online ads in 2007, and that this number will climb to $42 billion by 2011.
One noticeable, if not surprising, finding from the report shows that most of the nation’s largest advertisers are shifting increasing amounts of their advertising budgets from traditional media to the Internet. Sixty-nine of Advertising Age’s “100 Leading National Advertisers” allocated a smaller share of their total ad budgets to the four traditional measured media—TV, radio, newspapers and magazines—in 2006 than they did in 2005. Fifty-eight of those 69 advertisers increased the spending share they allocated to the Internet. Also notable is the fact that, combined, the top 100 advertisers spent nearly $230 million less on traditional media in 2006 compared with 2005, while increasing their online spending by $558 million.
The report also predicted that paid search’s share of online ad spending will continue to account for about 40 percent of total Internet ad dollars in 2011, while rich media spending—which makes up about 8 percent of online ad dollars in 2007—will eclipse 13 percent by 2011.
In contrast, the growth projection for total media ad spending is projected to increase by only 2.1 percent by 2011.