Skip to main content

Online Ad Spend to Top $55B by 2010

Piper Jaffray analyst Safa Rashtchy predicts the rapid growth of online advertising is near an "inflection point" at which gains will begin to accelerate, bringing about the time when online spending accounts for 10 percent of total ad spending much earlier than previously forecast.

Rashtchy's "conservative" estimate is that online advertising will exceed $55 billion globally by 2010, a 27 percent compound annual growth rate (CAGR) over 2005. He points to large advertisers like Absolut Vodka, GM and Ford, all of which plan to spend 20 percent of their marketing budgets online next year, he said.

"Advertisers are interested in enhancing the effects of both display and search advertising by creating a coherent campaign that reaches the consumers in various types of inventories," Rashtchy said.

Popular posts from this blog

How AI Impacts Data Workload Investment

The importance of data in today's business landscape fundamentally reshapes how CIOs invest in their IT infrastructure. A recent International Data Corporation ( IDC ) market study highlights this trend, revealing insights into spending patterns. The study indicates that structured database and data management workloads are the largest spending category within enterprise IT infrastructure. This is unsurprising, considering the foundational role these workloads play in managing digital business data. However, IDC's worldwide market study also sheds light on a noteworthy shift – spending in some categories witnessed a slight decline in 2023 compared to 2022. Data Workload Market Development This dip could be attributed to several factors. Organizations might optimize their existing data management processes, potentially leveraging more efficient storage solutions or cloud-based data management services. Additionally, the rise of alternative data sources, such as unstructured and