September 22, 2004
Online Advertising Forecast Up For 2005
“The outlook for online advertising in 2005 appears fairly robust--but exactly how robust varies according to who you talk to. Forecasts vary widely, ranging from a high of 33 percent from Deutsche Bank Securities to a low of 10 percent from Merrill Lynch. The 2005 forecast from eMarketer, an aggregator of market research data on the online segment, pegs growth at 25.2 percent. The Interactive Advertising Bureau/PricewaterhouseCoopers estimates that online ad spending will reach $9.1 billion by year-end 2004. On Monday, the Internet Advertising Revenue Report issued by the IAB/PwC found that for the first half of the year, online ad spending was up 39.7 percent versus 29 percent from 2003.
Geoff Ramsey, eMarketer CEO, said he expects to see double-digit growth increases for the next few years. “Part of the reason the Internet is growing is because budgets are opening up a bit--though maybe not as much as agencies and publishers would like--and the Internet is in a growth engine of its own,” Ramsey told Interactive Advertising World attendees.
“The tipping point goes by vertical business,” said Jeetil Patel, senior analyst, Deutsche Bank Securities. Patel expects spending toward online media to increase in the consumer packaged goods, retail, and pharmaceutical categories. However, he qualified this fact by underscoring that the growthcomes off a low rate of spending.“
Read more at MediaDailyNews: Online Forecast Up for 2005