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Search, Video Driving Online Ad Growth

Search and video will drive online ad growth, according to eMarketer, which is projecting a 10.5% increase in US online ad spending for 2011, followed by double-digit growth every year through 2014 when spending will reach $40.5 billion.

In May eMarketer predicted that online ad spending will increase by nearly 10.8% for 2010 - figures that represented a welcome change from 2009's drop of 3.4%. This year video led the growth with a 48.1% projected jump, a trend that eMarketer expects to see continue next year. It forecasts that online video advertising will remain the fastest-growing format for the next year at least, while search will continue to get the most dollars.

Discouraging Numbers

These numbers follow discouraging statistics from a an Adweek Media/Harris Poll released last week that reported more than six in ten respondents, or 63%, say Internet ads are the ads they are most likely to ignore. Marketers do have concerns, the eMarketer study found - but they are not relegated to the efficacy of online ads.

Online Ads Seen as a "Sure Thing"

Rather, the economic concerns of marketers are leading them to spend more for online advertisers because it is seen as more of a "sure thing," says David Hallerman, principal analyst at eMarketer. The firm is also noticing an increase in ad budgets, he says, with big brand marketers spending more for online video advertising and small and midsized firms spending more for banner and search ads.

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