San Francisco—U.S. online ad spending will reach $37.5 billion this year, up 18.0% over last year, according to a revised forecast from investment firm ThinkEquity.
The forecast is up from an earlier projection of $36.2 billion for the year.
“We are raising our projections given: 1) better than expected 2011 results; 2) solid Q1 trends; and 3) we believe ad dollars continue to migrate online at an accelerating rate,” ThinkEquity said in the report.
Search spending will reach $17.6 billion this year, up 19.0% over last year, according to the forecast. This is up from an earlier projection of $17.2 billion.
Display advertising, including videos ads and sponsorships, will reach $12.6 billion this year, up 14.0% over last year, ThinkEquity projects. This is down from a previous forecast of $14.2 billion.