JMP Securities has revised its forecast of the global online advertising market and now projects that it will grow at an annual growth rate of 25 percent in the next five years, reaching $65 billion by 2010, reports BtoB Online. JMP now expects the worldwide online ad market to reach $33.2 billion in 2007, according to the Hollywood Reporter. In the U.S. this year, online advertising will reach $13.2 billion, JMP says. That's 4.7 percent of total ad revenue for the year.

Those numbers are expected to soar by 2010, when the U.S. online ad market is expected to reach $35.9 billion, or 11.1 percent of all adspend.

"We expect large-budget advertisers to continue shifting an increasing percentage of their traditional ad budgets to the internet," JMP analyst William Morrison said.

JMP had earlier this year forecast a 20 percent annual growth rate. The revision is in part a response to a recent IAB/PricewaterhouseCoopers report that online advertising grew 34 percent in the third quarter.