SOURCE: eMarketer

February 28, 2007 09:00 ET

Online Ad Spending to Total $19.5 Billion in 2007

Internet Advertising Growth Slows, but Still Dwarfs Other Media

NEW YORK, NY -- (MARKET WIRE) -- February 28, 2007 -- US marketers will continue to shift their spending into online advertising in 2007. Despite this, growth in US online ad spending will be lower than it has been for the last three years, dropping from annual rates of over 30% to just under 19% in 2007 for a total of $19.5 billion.

Total US ad spending will increase by a mere 3.2% in 2007. With the exception of the online sector, the US advertising industry will be the same size in 2007 as it was in 2006.

The fastest-growing Internet ad format is video, which will see spending surge by 89% in 2007. When it comes to total spending, however, search advertising rules. In 2007, US advertisers will spend nearly $8.3 billion on paid search ads, $1.3 billion more than they did in 2006.

The US presidential elections and the Summer Olympics will be behind increased online ad spending growth in 2008. A rise of 22% will bring the total to nearly $24 billion.

The fundamental shift will not abate for several years, and by 2011, US marketers will spend $36.5 billion on online advertising, about 10% of their total media budget.

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