Online Advertising To Reach $50 Billion

By: Mike Sachoff - January 18, 2008

The U.S. online advertising market will reach $50.3 billion in revenue by 2011, more than doubling 2007’s revenue according to a new report by the Yankee Group, "The Cowboys Dance On and On: 2007 Online Advertising Forecast."

The Internet makes up about 20 percent pf overall media consumption in the U.S., but advertisers currently invest only 7.5 percent of their budget online. There is considerable potential for marketplace growth as advertisers bridge this gap. By 2011, close to 25 percent of all media consumption will be online, bringing in 15 percent of the advertising dollars.

The factors leading to continued growth are increased online audiences, the creation of new types of advertising and the development of new publisher business models that help sell interactive advertising.  The report points out that even with large online audiences and growing Internet media consumption, advertisers online budgets continue to lag compared to traditional media.

Daniel Taylor

"With internet connectivity nearly ubiquitous, online advertising growth is inevitable," said report author Daniel Taylor, senior analyst at Yankee Group.

"And yet the Internet is still a relatively new digital medium. Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development."

Mike Sachoff

About the Author

Mike SachoffMike is a staff writer for WebProNews.

View all posts by Mike Sachoff
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  • SEO Web Design Firm

    Well put and great news about interactive marketing. Online Marketing is going to exploded in the next 10 years.

  • Advertising Agency Raleigh

    We have recnetly started to focus on our online efforts and brought on a team to help us with that.  Great article and the more time that passes the more focused traditional advertising agencies need to be. – Lauren

  • Sam

    I will be interesting to know whether Online Advertising will continue to grow in several years

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  • Bill

    I believe that the market for online advertising could be even bigger than $50 billion by 2011. Given the nature of the economy, businesses are being forced to cut their overall budgets and focus on more targeted advertising… thus, contributing to the expansion of online advertising.

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  • eMoneyMakingOnline

    I would say, more and more peoples are moving now to online advertising because its cheaper. More over it is targeted to the right audience that gives more conversion or returns in the business. As Bill told, this may reach more than $50 billion. Lets wait for 2011.

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    50 billion really shows the importance of e commerce