Surge in Online Marketing and Spending on Search

By Exclusive Concepts Blog Team

Jupiter Research, in a report released yesterday, says Online Ad Spending will surge to $18.9 billion by 2010, up about 59%? from an estimated $11.9 billion this year. ? Yet, that’s still only 7% of all ad spending.

(In May, Forrester Research estimated that this year’s online spending would be $14.7 billion and $26 billion in 2010.)

By 2010, spending on search (an estimated $7.5 billion) will surpass the spending on display ($7.1 billion)!

Jupiter Research also forecast that in 2010, spending on search will account for $7.5 billion, surpassing that year’s estimated $7.1 billion spend on display advertising. Additionally, marketers will spend $4.5 billion on streaming and rich media, and $4.1 billion on classified advertising in 2010. This year, by contrast, online marketers will spend an estimated $5.1 billion on display advertising, $4.2 billion on search, and $2.6 billion on classifieds.

The researchers propose that one of the reasons for the growth in search advertising will be a recognition that search can be used for branding purposes.

Jupiter Research also reported that consumers between the ages of 25 and 44 spend more time online than watching television. A June survey of more than 4,000 people revealed that consumers between the ages of 25 and 34 spend 14 hours a week online, compared to 10 hours a week watching TV, while consumers ages 35-44 spent 14 hours a week online and 12 hours a week watching television.

Surveyed consumers also indicated they were responding to Web ads. Almost one in three–31 percent–said they made purchases online as a result of viewing an Internet ad, while 22 percent said that online ads spurred offline purchases.