A new forecast by JupiterResearch predicts that online advertising will more than double over the next five years. The press release explains the online ad market will grow from $6.6 billion in 2003 to $16.1 billion in 2009.
While paid search will grow 30% compounded annually over the next two years, it is no longer the sole driver of online ad spending. Display ads and online classifieds will each grow more than 25% compounded annually over the same period. Gary Stein, Senior Analyst at JupiterResearch comments:
"The growth in online advertising is the product of all the progress that Web sites and technology providers have made in the last two years. We've seen companies very actively working to make the Internet a more attractive advertising medium. With targeting technologies, the discovery of search by major advertisers, and real measurement and planning tools, the Internet is ready to fulfill its early promises of effectiveness, reach and trackability."
On the growth or, better, on the evolution of online advertising, there is also an article published today on eMarketer which reports about recent Doubleclick's studies. Doubleclick introduces the concept of "view-throughs" (online conversions that result from a user seeing an ad online but not clicking on it) that account for a higher rate of conversions than click-throughs on online advertising. For Q2 2004, the view-through rate averaged 0.73% for DoubleClick customers' campaigns, while their average click-through rate (CTR) was 0.43%.