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EMarketer lowers online ad spending projections

Published on .

New York—Advertisers will spend $23.6 billion online this year in the U.S., 11.3% higher than in 2007, according to marketing and media research company eMarketer. However, that figure represents a reduction in eMarketer’s forecast in the summer, when it predicted online ad spending would hit $24.9 billion this year.

Contributing to the lowered estimate is a slowing of display advertising expenditures as automakers and retailers cut their ad budgets, according to eMarketer. While the earlier forecast predicted display ad spending would rise 16.9% this year, the new prediction calls for a 3.9% rise.

Paid search’s growth is lower, too, at 21.4% this year, down from 25.5% in 2007. Paid search is expected to grow 14.9% next year. Despite the continuing decline, eMarketer noted that paid search will grow more than the overall online market both this year and next.

—Christopher Hosford

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