Even faster online ad growth expected in 2005
As eMarketer reports, the Internet Advertising Bureau and PricewaterhouseCoopers released final figures for US online ad spending for 2004, which show that the market had surpassed the levels of the Internet boom years. Online ad spending for 2004 totaled $9.6 billion, exceeding the previous revenue record, set in 2000, by nearly 20%.
Based on the latest numbers, eMarketer predicts that online advertising will rise by nearly 34% in 2005 to about $13 billion. eMarketer earlier had estimated that 2004 ad revenue would come in at $9.5 billion.
eMarketer's new 2005 forecast assumes that revenues from Web search advertising, also known as paid search, will grow 40% year over the year to $5.4 billion. The previous forecast had been $4.7 billion.
Consumer advertisers continue to represent the largest category of advertisers, accounting for 49% of the 2004 annual revenues, up significantly from the 37% reported for the same period in 2003. The largest sub-categories under the consumer umbrella include retail, automotive, leisure, entertainment and packaged goods. As a percent of 2004 total revenues, Computing and Financial Services account for 18% and 17% respectively, with Telecommunications and Pharmaceutical & Healthcare rounding out the total at 4% and 6% respectively.
Based on the latest numbers, eMarketer predicts that online advertising will rise by nearly 34% in 2005 to about $13 billion. eMarketer earlier had estimated that 2004 ad revenue would come in at $9.5 billion.
eMarketer's new 2005 forecast assumes that revenues from Web search advertising, also known as paid search, will grow 40% year over the year to $5.4 billion. The previous forecast had been $4.7 billion.
Consumer advertisers continue to represent the largest category of advertisers, accounting for 49% of the 2004 annual revenues, up significantly from the 37% reported for the same period in 2003. The largest sub-categories under the consumer umbrella include retail, automotive, leisure, entertainment and packaged goods. As a percent of 2004 total revenues, Computing and Financial Services account for 18% and 17% respectively, with Telecommunications and Pharmaceutical & Healthcare rounding out the total at 4% and 6% respectively.
