*Online ad spending is expected to reach $25.8 billion this year, up 23% over last year.
*Spending will be driven largely by paid search engine advertising, which is expected to total $15.5 billion this year, up 31.9% over last year.
*Spending on online video is projected to reach $1.4 billion this year, up 74% over last year.
*Spending on advertising on social networks is projected to reach $1.6 billion this year, up 70% over last year.
Longer term, the U.S. online advertising market will reach $50.3 billion in revenue by 2011, more than double the figure for 2007. By 2011, nearly 25% of all media consumption will be online, drawing 15% of the advertising budget, according to the forecast.
Source: Yankee Group, January 2008
In March, Google launched a free ad serving solution, Google AdManager, serving mostly small- and midsize businesses. Google offers the free ad server in exchange for the opportunity to fill up excess inventory with its own ads.
“The No. 1 issue on the minds of everyone in the various segments of the industry is how the ecosystem itself is going to evolve. There are a number of major companies positioning themselves as ad platforms and looking to add value up and down the value chain. The evolution of Microsoft, AOL, Yahoo and Google, through a combination of technological developments and acquisitions, is having a transformative effect on the landscape.”
—Randall Rothenberg, president-CEO, Interactive Advertising Bureau
Jan 14, 2008