Skip to main content

U.S. Advertisers Spend $31.3B for Online Ads in 2011

 
Search advertising has the largest share of online adverting in the U.S. market, but display ad spending is gaining share. The steep growth in online video ad spending, combined with solid increases for banners, will help display ads eventually exceed search ad spending.

Total online display ad spending -- including online video, banner ads, rich media and sponsorships -- has already brought the category close to the range of investments in search engine marketing.

According to the latest market study by eMarketer, this year U.S advertisers will spend $14.38 billion on search ads and $12.33 billion on online display -- that's up by 19.8 percent and 24.5 percent, respectively, over 2010 spending.

Display will continue to grow at a faster pace than search throughout the forecast period, and is on track to surpass search by 2015.

"The re-balancing of ad budgets across the board, among companies both large and small, national and local, will be pushing more brand-oriented dollars on to the web," said David Hallerman, principal analyst at eMarketer.

The rise of display advertising, in particular online video, follows a rise in usage of digital advertising for branding. Online advertising was considered primarily for direct response, but branding is increasing in importance.

This year, eMarketer projects 39.4 percent of online ad dollars will be devoted to branding by way of banner ads, rich media, sponsorships and video. All other ad formats -- including classifieds, embedded email ads, lead generation and paid search -- are typically classified as direct response.

Spending on branding-oriented online ads will grow more quickly than direct-response spending throughout the forecast period, and by 2015 it's estimated that 44.4 percent of online advertising spending will be devoted to branding.

Popular posts from this blog

Why 2025 Will Redefine Mobile Connectivity

As international travel rebounds to pre-pandemic levels in 2025, the mobile communication roaming market is at an inflection point. Emerging technologies and changing customer preferences are challenging traditional wholesale roaming agreements between mobile network operators (MNOs). The global wholesale roaming market is projected to more than double, from $9 billion in 2024 to $20 billion by 2028. This surge will be fueled by the expanding deployment of 5G Standalone (SA) technology, which enables real-time roaming connections and activity monitoring. But beneath this headline figure lies a complex landscape of regional variations and technological mobile service disruptions. Global Mobile Roaming Market Development Western Europe dominates inbound roaming connections, largely thanks to its Roam Like at Home (RLAH) initiative, which eliminates roaming charges among member countries.  Meanwhile, the Indian Subcontinent is emerging as a growth hotspot. Between 2024 and 2029, inbou...