US Online Ad Spending: Peak or Plateau?
September 3, 2006
Ad dollars continue shifting to the Internet. For example, Internet ad spending by auto manufacturers rose nearly 52% during the first seven months of this year. Yet since the spending gain in the category was only $49 million, compared to a print loss of $750 million, even if total ad spending hits a bump in the road, Internet advertising still has room to grow.
At first glance, it appears that Internet ad spending has kept pace with the audience online. Last year, advertisers spent an average of $71.51 per user, which eMarketer projects will increase to $88.28 this year and will inch close to the $100 per user mark next year.
However, even the high growth rate for average ad spending per user fails to match up with the impressive growth rate for overall Internet ad spending.
Key questions the “US Online Ad Spending” report answers:
Why will Internet advertising not continue growing at 30%-plus rates?
What outstanding trends will draw more ad dollars to the Internet?
How will paid search continue as the dominant online advertising format?
When will total media ad spending decrease—and why?
Are the largest US advertisers firmly committed to Internet advertising?
What will be the impact of video advertising?
