Jupiter: SEM Will Surpass Display in 2010

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A JupiterResearch forecast released yesterday projects online advertising will double from $9.3 billion last year to reach $18.9 billion in 2010, when search engine advertising is expected to overtake standard display.

Advertiser confidence in the online channel and the surge in search engine marketing are expected to propel this spend, the New York market researcher said. Display will grow at a 7 percent compounded growth rate over the next five years and search at more than 12 percent.

Other sectors of online advertising will continue to grow, too. Classified ads will rise nearly 10 percent yearly, climbing to $4.1 billion by the end of the decade.

Also, the increased household penetration of broadband will generate a 25 percent annual compounded rate taking rich media spending to $3.5 billion by 2010, and raising streaming media, at a 30 percent growth rate, to $943 million.

JupiterResearch expects publishers to get more revenue from disparate sources, including direct sales and network revenue-share deals. Revenue of ads priced on a performance basis this year will surpass that of ads sold on an impression basis.

Network providers, who are increasing their use of targeting technology, will provide most of the performance inventory for publishers.

Mickey Alam Khan covers Internet marketing campaigns and e-commerce, agency news as well as circulation for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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