New York, New York – (via THE
HOSTING NEWS) – August 8, 2005 – JupiterResearch, a division of Jupitermedia
Corporation has released its 2005 Online Advertising Forecast at the Search
Engine Strategies Conference and Expo 2005. The forecast reveals that online
advertising will continue steady growth over the next five years, eventually
reaching $18.9 billion in 2010, compared to $9.3 billion at the end of 2004.
This growth reflects not only advertiser confidence in the medium, but also
the strength of advertising on search engines in 2010. Search engine advertising
will generate more revenue than standard display advertising by 2010.
Search engine advertising will overtake standard display advertising due to
the difference in compound annual growth rates – display will grow at 7% and
search will grow at over 12% over the next five years.
JupiterResearch Senior Analyst Gary Stein explains the surge in search engine
advertising, ”There is phenomenal momentum behind search engine advertising.
The number of advertisers using search to market products continues to grow,
as does the overall efficiency of the market – search engines are getting even
better at making money off search engine results pages.”
The rise of search engine marketing, however, is only one element of an overall
growing online advertising market. Other areas will also experience sustained
growth over the next several years. Classified advertising will grow at nearly
10%, reaching $4.1 billion in 2010. Advertisers will also take great advantage
of the growing number of broadband-connected households to field rich and streaming
media advertisements. Rich media spending will grow at a 25% compound annual
growth rate (to $3.5 billion) and streaming media will grow at a 30% compound
annual growth rate (to $943 million) by 2010.
Publishers will see revenue grow from several sources, including direct sales
and network revenue-share deals. This year, the revenue of ads priced on a performance
basis will surpass that of ads sold on an impression basis. Much of this performance
inventory will come from network providers, which are increasing their use of
targeting technology to provide better results for publishers. ”Publishers
are in a good position right now,” noted JupiterResearch VP and Research Director
David Card. ”Not only can they monetize their non-premium inventory, but they
can strategically choose the network providers they feel can generate the most
yield from that inventory,” added Card.
The complete findings of this forecast are available to JupiterResearch clients
online at www.jupiterresearch.com.