The U.S. online advertising industry will shake off the recession’s effects and have an excellent time of it in 2010, according to one expert. J.P. Morgan’s Imran Khan has predicted that just about every aspect of the sphere should experience significant growth this year.
Let’s start with the subject of display advertising. Ground was lost during 2009; in a document titled "2010 Internet Industry Outlook," Khan put the change at a negative 5.2 percent. But he expects that $8.3 billion will be spent on display ads in 2010, which will work out to a year-over-year increase of 10.5 percent. Not bad.
Then an even more dramatic uptick will occur with respect to search advertising, if Khan’s forecast is correct: spending should jump from $14.6 billion in 2009 to $16.6 billion, an increase of 13.2 percent. This spells good news for Google, Yahoo, and Microsoft (along with their shareholders).
Finally, it’s possible that anything and everything with ties to mobile advertising will make money this year. Khan thinks that spending on mobile ads will shoot up 45.0 percent, hitting $3.8 billion following 2009’s $2.6 billion.
Let’s all cross our fingers and hope that these predictions prove true (or better yet, conservative).