NEWS
July 25, 2006
JupiterResearch: U.S. Online Ad Forecast

JupiterResearch reports that advertisers will continue to increase the share of total budget spent online between 2006 and 2011, with the market reaching $25.9 billion or almost nine percent of total U.S. advertising spending in 2011.

The new report, "U.S. Online Advertising Forecast, 2005 to 2011," predicts that search advertising will continue to be the largest online ad component over the next five years.

"The large increase in search advertising is due to new clients experimenting with search and advertisers competing for keyword placement, which drives up prices," says Emily Riley, JupiterResearch analyst and lead author of the report. "Additionally, as search advertisers mature, they start using longer lists of keywords, increasing their overall budget."

JupiterReseach projects a 21 percent growth of online ad spending in 2006.

"While online display advertising spending will not be as large as search spending, several subsections of display advertising, such as rich media and video, will grow rapidly," says David Schatsky, president, JupiterKagan.