JupiterResearch released its 2005 Online Advertising Forecast which reveals that online advertising will continue steady growth over the next five years, eventually reaching $18.9 billion in 2010, compared to $9.3 billion at the end of 2004. This growth reflects not only advertiser confidence in the medium, but also the strength of advertising on search engines in 2010. Search engine advertising will generate more revenue than standard display advertising by 2010. Compound annual growth rates tell the story: display will grow at 7 percent and search will grow at over 12 percent over the next five years. The rise of search engine marketing, however, is only one element of an overall growing online advertising market. Other areas will also experience sustained growth over the next several years. Classified advertising will grow at nearly 10 percent, reaching $4.1 billion in 2010. Advertisers will also take great advantage of the growing number of broadband connected households to field rich and streaming media advertisements. Rich media spending will grow at a 25 percent compound annual growth rate (to $3.5 billion) and streaming media will grow at a 30 percent compound annual growth rate (to $943 million) by 2010. Publishers will see revenue grow from several sources, including direct sales and network revenue-share deals. This year, the revenue of ads priced on a performance basis will surpass that of ads sold on an impression basis. Much of this performance inventory will come from network providers, which are increasing their use of targeting technology to provide better results for publishers.
Try to imagine this scenario, that General Motors and Ford were given exclusive franchises to build America's interstate highway system, and also all the highways that connect local communities. Now imagine that, based upon a financial crisis, these troubled companies decided to convert all "their" local arteries into toll-roads -- they then use incremental toll fees to severely limit all travel to and from small businesses. Why? This handicapping process reduced the need to invest in building better new roads, or repairing the dilapidated ones. But, wouldn't that short-sighted decision have a detrimental impact on the overall national economy? It's a moot point -- pure fantasy -- you say. The U.S. political leadership would never knowingly risk the nation's social and economic future on the financial viability of a restrictive duopoly. Or, would they? The 21st century Global Networked Economy travels across essential broadband infrastructure. The forced intro...