IDC: Worldwide spending on Internet ads to reach $65 billion this year

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Framingham, Mass.—Worldwide spending on Internet advertising will total $65.2 billion this year, representing nearly 10% of ad spending across all media, according to IDC’s “Digital Marketplace Model and Forecast” released Wednesday. IDC projects that share will reach 13.6% by 2011 as Internet ad spending grows to $106.6 billion worldwide.

“Compared to more mature types of advertising, Internet advertising is growing at a phenomenal rate,” said John Gantz, chief research officer at IDC, in a statement. “Internet advertising is still relatively new and growing from a much smaller base. By the end of the forecast period, spending for Internet advertising will trail direct mail—the third-largest form of advertising—by more than $30 billion, while spending on TV [spots] and print ads will each be nearly twice as great as for online ads.”

Keyword ads will remain the dominant type of Internet advertising throughout the forecast period, capturing more than a third of annual online ad spending worldwide. Display ads will be the next largest type of Internet advertising, capturing more than 20% of worldwide spending annually through 2011, followed by classified ads with nearly 19%.

—Carol Krol

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