Online Ad to Rebound in 2003

In its latest report, Interactive Marketing: Stats, Strategies and Trends, eMarketer estimates that online advertising spending in the US alone will reach $6.7 billion next year.

According to eMarketer’s just-released Interactive Marketing: Stats, Strategies and Trends report, after two straight years of decreasing sales, US online advertising will begin recovering next year, slowly.

According to eMarketer projections, 2003 spending will rise slightly to $6.70 billion, up from $6.38 billion this year. The expected bounce-back is due to a combination of factors, including traditional marketers devoting larger slices of their ad budgets to online advertising as well as a general easing of the economic recession. By 2005, online ad expenditures will hit $8.10 billion-still less, however, than 2000’s spending of $8.23 billion.

According to eMarketer Senior Analyst David Hallerman, “the last two years were a disaster for online advertising…The fact that 2003 is going to be a growth year, even a small one, is good news.”

As eMarketer pegged this year’s growth at -11.5%, and forecasts +5% gain for next year, there is a strong and definite shift in outlook from negative to positive. Even during the downturn in online advertising spending, when six types of online ads posted losses, positive results came from three online vehicles: keyword searches, classifieds and rich media.

“The great news here, though, is the long term projection,” says Mr. Hallerman. “Beyond next year, online ad spending will continue to show steady growth, going to 7.5% in 2004 and reaching a healthy 12.5% growth rate in 2005.”

Source:

http://www.emarketer.com/news/article.php?1001884&c=newsltr&n=lead&t=ad#article