US internet advertising to reach $22.3 billion by 2009

MUMBAI: In 2005, US Internet advertising spending will surpass $10 billion for the first time, shooting past that mark to $12.9 billion, according to eMarketer projections.

That number more than doubles 2002's $6.0 billion figure. Four years from now, companies will spend nearly $10 billion more on Internet ads, reaching $22.3 billion in 2009.

Four basic trends support the continued growth of Internet ad spending:

Larger ad budgets overall

Shifts in ad budgets from other media to the Internet

More companies including the Internet as part of their campaigns

Increased prices for both branding ads (display and rich media) and

direct response vehicles (such as paid search



eMarketer's new report, Ad Spending Trends: The Internet and Other Media, explores the changing landscape of media spending -- online and off -- and the dynamics of how the two are affecting one another.



"The spending growth is impressive, but shouldn't come as too great a surprise. These dazzling increases are possible in part because growth came from such a small base. And in the last few years the Internet has truly become a mainstream medium," said eMarketer senior analyst and author of the report David Hallerman.

According to quarter-by-quarter historical data from the Interactive Advertising Bureau and PricewaterhouseCoopers, US Internet ad spending has increased in eight of the last nine quarters. And eMarketer projects continued gains through 2005, with fourth-quarter spending hitting a record $3.8 billion.

"To call this advertising market 'hot' implies it's a fashion that might turn slack at any moment. These yearly and quarterly ad spending gains point to a sea change in media usage among marketers, reflecting how the Internet has become an essential element of daily life for more and more individuals," added Hallerman.

Some of the key questions addressed in the "Ad Spending Trends" report:

Where is the money coming from to support increased Internet advertising?

When will the internet's share of total media spending surpass the five per cent mark?

How long can Internet advertising keep increasing by 20 per cent - plus each year?

What trends will most influence total media ad spending?

Which companies are investing the most ad dollars in which media?

Latest Reads
PVR promotes cleaner air

MUMBAI: Cinema exhibition company PVR Pictures has launched a new campaign called, #BeTheCommuter with an aim to promote clean air and curb pollution.

MAM Marketing Brands forays into furniture

MUMBAI: In a move to further expand its product categories,, India’s first B2B e-commerce platform for hospitality procurements has announced its entry into furniture, fixture and equipment (FF&E) segment.  With over 50 brands and more than 5000 products from across the globe,...

MAM Marketing Brands
Digital will be core of ad budgets by 2020: DAN report

MUMBAI: The increasing penetration of digital media in India is creating huge opportunities for marketers to reach out to untapped audiences in newer ways than before. Marketers are getting innovative with the way they choose to advertise to their audience.

MAM Media and Advertising Digital Agencies
Vodafone brings back the Pug in AR

MUMBAI: Television viewers and spectators at Sunday’s grand finale of the Vodafone Premiere Badminton League broke into impromptu smiles when they realised they had unexpected company.

MAM Marketing Brands
Smartworks shows tech-friendly office in new ad

MUMBAI: Provider of shared work spaces, Smartworks has launched its second brand video featuring the benefits of hassle free technology to enhance collaboration and productivity for its members.

MAM Marketing MAM
Ramesh & Suresh get 'lost' again in Cadbury 5Star 3D

MUMBAI: Ramesh and Suresh are back and this time they are lost at a whole new level. Over the last twelve years, Cadbury 5Star has entertained viewers bringing to them ‘lost’ antics of the iconic duo of Ramesh and Suresh.

MAM Marketing MAM
Amazon says out with the old in Great Indian Sale ads

MUMBAI: E-commerce giant Amazon has launched its new campaign ‘Ab Sehan Kyun Karna’ in tandem with its first Great Indian Sale for 2018. The message to the customers is to do away with the old and usher in the new for the new year. The campaign features a series of ads on various situations in...

MAM Marketing MAM
WATConsult celebrates 11 yrs with unique board game

MUMBAI: WATConsult, the digital and social media agency from Dentsu Aegis Network, has launched PlayAgency, an innovative board-game, as part of its 11th anniversary celebration. To break the monotony of regular anniversary campaigns, the agency came up with something unique which caters to all...

MAM Marketing Brands
Dentsu Webchutney launches digital campaigns for Vespa Red and Aprilia

Dentsu Webchutney has created a digital campaign for Piaggio India’s trendsetting Vespa Red that was launched the month of October last year. It is an extension of its existing global collaboration with Red, an organisation that partners with global brands to create awareness and support the fight...

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories