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May 31, 2005
Goldman Sachs: Web Ads to Grow in 2005

Goldman Sachs announced an internet usage study that predicts online advertising will grow this year as broadband access increases. The securities firm said the online advertising industry is expected to increase by 28 percent to reach $12.3 billion.

"We still believe that broadband is a driver of growth for the sector -- however, a rising tide will likely not lift all boats to the same extent as it did in prior years," says Anthony Noto, analyst, Goldman Sachs.

The report predicts that major new media companies such as Yahoo! and Google stand to benefit most as they add more content and services.

"In our view, new media companies are poised to see the greatest marginal benefit from broadband versus prior years and versus ecommerce companies," adds Noto.

Last week, Forrester Research and released a report that predicts online sales to reach $109.6 billion this year.

Additional resources:

Forrester: Online Retail Spending Up '04


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