eMarketer issued a report today predicting 20% growth in online ad spending in 2011 (over 2010). This online ad spending forecast was actually revised higher from earlier predictions of “only” 11% growth. Here is the new graphic:
What’s behind this projected growth in online ad spending? For one, resurgent formats (like video) and new platform growth (like social media and mobile) are driving the increases. We’re seeing that already, in fact.
What does it mean for marketers? They should increasingly see the internet as a place where brand advertising, especially in the form of video advertising, can be – and is – effective. Advances in technology which yield greater targeting and measurement than marketers get with TV ads fuels this, as does the growing consumption of online video which is most attractive to brands than any other online ad format.
I’m always interested in these projections, because clearly we’re past the tipping point of the internet becoming a major advertising vehicle rivaling TV. The question really is how much of a rival it will be ultimately.