Online Advertising Market Will Grow.

A new forecast by JupiterResearch (a division of Jupitermedia) predicts that online advertising will more than double over the next five years. The forecast, presented today at the Jupiter/ClickZ Ad Forum in New York, sees the online ad market growing from $6.6 billion in 2003 to $16.1 billion in 2009. While paid search will grow 30% compounded annually over the next two years, it is no longer the sole driver of online ad spending. Display ads and online classifieds will each grow more than 25% compounded annually over the same period.

Much of the growth in online advertising can be credited to the increasing sophistication of advertisers. Benefiting from experience and a more powerful tool set, advertisers are better able to target, measure and convert their audiences online. This provides advertisers with the confidence to allocate more of their advertising dollars to the Internet and a willingness to pay more for premium online inventory as it becomes scarce.

“The growth in online advertising is the product of all the progress that Web sites and technology providers have made in the last two years. We’ve seen companies very actively working to make the Internet a more attractive advertising medium,” said Gary Stein, Senior Analyst at JupiterResearch. “With targeting technologies, the discovery of search by major advertisers, and real measurement and planning tools, the Internet is ready to fulfill its early promises of effectiveness, reach and trackability,” added Stein.