The firm revised its predictions after seeing Google and Yahoo's first-quarter financial results in late April. Google's U.S. ad revenue was an estimated $757 million for the first quarter. Yahoo's U.S. ad revenue was estimated at $715 million. (EMarketer estimated U.S. revenue because the two companies' financials referred to global revenue only.)
Rich media will lead growth among online ad formats in 2005, with a 47% spurt. Paid search will experience only a 40% growth. The reason is the increase in consumers installing broadband connections. EMarketer predicts 60% of online households will have high-speed hook-ups by the end of the year.
"More than speed, the importance of broadband is its pervasiveness," said David Hallerman, senior analyst at eMarketer. "Like TV or radio, you turn it on and it's always there."