Online advertising spending is expected to nearly double by 2009 to $16.1 billion, and to represent a much higher percentage of marketers' total budgets in that time, a study has found.
The study conducted by JupiterResearch, a unit of Jupitermedia, says that Internet advertising will grow 27 percent this year to $8.4 billion, with double-digit growth for both paid search listings and display ads such as banners.
Paid search also will continue its growth this year, jumping 34 percent to $2.6 billion. That growth is expected to be driven by boosts in the cost per click of search ads, the report says, leading marketers to focus on efficiency in the conversion of clicks into paying customers.
The report also projects that display ads will grow 24 percent to $3.9 billion as better tracking technologies strengthen the effectiveness of online advertising. Online classifieds' growth spurt will continue, increasing 26 percent this year to $3.9 billion and hitting $3.7 billion in 2009.
Online ad spending made up just 3.5 percent of offline ad spending last year, but will more than double its share to 6.5 percent in 2009. The report says that by 2007, online advertising will have surpassed magazine advertising in dollars spent.
The medium is expected to increase its share of marketers' budgets from 3.5 percent last year to 6.5 percent in 2009.
Advertising industry forecasters have predicted total U.S. ad spending will grow between 6 percent and 9 percent this year thanks to an improved economy, political campaigns and the summer Olympic Games.
Experts say Internet advertising is widely expected to be the fastest growing media category, followed by cable and network television, marking its return from the dot-com bust in 2000.
