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Online ad spending sees continued growth

Published on .

Online advertising is expected to grow to $11.5 billion in 2003, surpassing dollars spent in some traditional media, but will look less like traditional advertising and have far-reaching effects on the offline world--including erosion among traditional media and increased expectations of efficiency--according to new research released by Jupiter Communications. The research predicts that ad spending will increase 40% in the next four years, with financial services, automotive and media ventures, not packaged goods, leading the spending. In related news, the Internet Advertising Bureau found Internet advertising revenue hit $693 million for the first quarter of 1999, underscoring increased advertiser confidence in the medium, consumer advertisers leading the trend, and continued strength in hybrid pricing models. That's up from $351 million recorded in the first quarter of 1998.

Copyright August 1999, Crain Communications Inc.

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