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Forrester sees jump in online ads

Published on .

Marketers' online ad budgets will jump from $620,000 this year to $1.6 million in 2003--or 8% of their ad spending--according to findings of Forrester Research's latest online advertising report, due to be released tomorrow. Among other findings: online pure-plays are spending $3 million a year on Web advertising--10 times that of a traditional marketer; but over the next five years, traditional marketers will increase their online ad spending and pure-plays will decrease Web spending, investing more in traditional media. The report from Cambridge, Mass.-based Forrester also found that traditional marketers will rely on non-advertising marketing budgets to fund increased online advertising, while online spending for Web start-ups will come completely from initial public offerings and venture capital investments.

Copyright August 1999, Crain Communications Inc.

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