Tuesday, January 22, 2008

Report: Online Ad Market Will Double By 2011

BOSTON -- January 21, 2008: The U.S. online advertising market will reach $50.3 billion by 2011, according to a new report from Yankee Group -- more than twice what online ads brought in last year.

The Internet accounts for about 20 percent of overall media consumption in the U.S., says the Yankee Group, but advertisers are spending only about 7.5 percent of their budgets online, leaving "tremendous potential for marketplace growth." By 2011, the researcher predicts, 25 percent of all media consumption will be online, drawing 15 percent of advertiser dollars.

According to Yankee Group, the factors driving the revenue growth are increased online audiences, the development of new types of advertising, and new publisher business models that help sell interactive ads.

"With Internet connectivity nearly ubiquitous, online advertising growth is inevitable," said Yankee Group Sr. Analyst Daniel Taylor, author of the report. "And yet the Internet is still a relatively new digital medium. Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development."

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