Skyrocketing spending in the search category � the core business for Google � has paced the entire Internet advertising sector, but Kagan Research forecasts two other categories will boom as well in the 10 years ahead.
The Internet categories of rich media and sponsorships will experience compound annual growth rates (CAGR) from 2006-2016 of more than 10 percent, according to soon to be published Kagan databook Advertising Forecasts 2006: U.S. Market Trends & Data for All Major Media (fourth edition). Search is also forecast to be a 10 percent CAGR advertising category.
Search was a $4.95 billion gross advertising category in 2005 accounting for 41.5 percent of the $11.9 billion in total gross Internet advertising for last year. In all, there are eight categories � using the format of the Interactive Advertising Bureau � for Internet advertising, including slower growing email, slotting fees, display ads, classifieds and referrals.