Spending on internet advertising in the US, will grow from $6.2
billion in 2002 to $15.9 billion in 2007 and in 2001 on-line
advertising spending suffered less than off-line, according to
figures released yesterday by Jupiter Media Metrix, the internet
measurement firm.
Although spending on on-line advertising was virtually flat
between 2000 and 2001, Jupiter said it is faring slightly better
than off-line. In fact, only cable fared better than the internet,
which, Jupiter argues, “actually bodes well for the web as it
increasingly adopts the niche-orientation of cable TV."
The firm reports that on-line classified ads will grow faster
than any other form of on-line advertising this year in the US.
Spending on these ads increased by 38% last year compared to 2000
and will increase again during 2002 to $1.2 billion.
Jupiter says the strong performance of on-line classifieds in
the overall weak market is due, in large part, to an increasing
shift of off-line revenues online. It estimates that spending will
increase to $2.3 billion by 2007.
Jupiter analysts forecast that, ultimately, on-line advertising
will account for 7% of the off-line ad market spending in the US.
Factors driving the growth include increased broadband penetration,
a sustained growth of the on-line population, media consolidation
and general economic recovery.
