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Forecast: Search, display advertising to advance strongly this year

By Published on .

New York—Search advertising in the U.S. is poised to grow 13% this year over 2009's level, with display advertising projected to rise 10.5%, according to JP Morgan's “2010 Internet Industry Outlook.”

Search revenue is expected to hit $16.5 billion this year, according to the report, with strong growth continuing into 2011 spurred by the proliferation of smart phones and mobile browsers.

Display ad sales in the U.S. will reach $8.3 billion this year, spurred by 45% mobile ad growth, according to the report. Mobile ad expenditures are forecast to grow to $3.8 billion this year, with most of that growth ($3.2 billion) coming from SMS text-message advertising. JP Morgan predicted $253 million will be spent on mobile display and $31 million on mobile search.

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