According to new eMarketer estimates, online ad spending in the United States will rise by 19 percent in 2007, significantly less than the 30 percent increases the last three years.
eMarketer further projects annual growth falling to 13 percent by the end of 2011. Growth estimates are based on three premises, according to eMarketer senior analyst David Hallerman:
- Even if the economy slows down, continued growth in the online audience and the need for advertising to follow that audience will drive an ongoing shift away from other media, most notably newspapers and radio.
- The opportunities for better targeting and more accurate tracking offered by online advertising relative to other media makes spending on the internet even more appealing in a soft economy.
- As online video advertising becomes more widely used, large brand marketers who have up to now only dipped their toes online will devote increasingly greater budget shares to the internet.
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