Online ad spending continues to surge

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New York--Online advertising spending will increase 144% over the next five years, from $6.6 billion in 2003 to $16.1 billion in 2009, according to a forecast presented Wednesday by Jupiter Research Senior Analyst Gary Stein at the Jupiter/ClickZ Advertising Forum Conference & Expo 2004.

Online advertising spending is expected to rise to $8.4 billion this year.

“The U.S. online ad market is surging,” Stein said. Much of the increase is being fueled by paid search, which is projected to grow at a compound annual rate of 30% over the next two years. Display ads and online classified ads are projected to grow more than 25% over the same period.

Targeting is the biggest area of interest right now, Stein said. He added that by 2008, online ad spending will be about even with magazine ad spending and, by 2009, “it’s going to pull ahead.”

--Carol Krol

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