Report Forecasts Online Ad Rebound in 2003

Share this article:
After two straight years of decreasing sales, U.S. online advertising will begin to recover next year, according to a report released yesterday from eMarketer.


Called "Interactive Marketing: Stats, Strategies and Trends," the report states that 2003 spending will rise slightly to $6.7 billion, up from $6.38 billion this year.


The rebound is expected because of several factors, including traditional marketers devoting larger slices of their ad budgets to online advertising as well as a general easing of the economic recession.


By 2005, online ad expenditures will hit $8.1 billion, according to the report, though that is still less than 2000's $8.23 billion.


"The last two years were a disaster for online advertising," said David Hallerman, senior analyst at eMarketer. "The fact that 2003 is going to be a growth year, even a small one, is good news."


Hallerman said that even during the downturn in online ad spending, when many types of online ads posted losses, positive results came from three vehicles: keyword searches, classifieds and rich media.


"The great news here, though, is the long-term projection," he said. "Beyond next year, online ad spending will continue to show steady growth, going to 7.5 percent in 2004 and reaching a healthy 12.5 percent growth rate in 2005."


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Ramp Introduces Video Platform for Marketers

Ramp Introduces Video Platform for Marketers

The cloud-based platform syncs with marketing automation and capitalizes on user behavior to extend view times.

CMOs Who Take Charge of Digital Make More Money

CMOs Who Take Charge of Digital Make More ...

Chief marketers who usurp the CDO role earn the board's respect, as well as base salaries of $500,000 and up, says a new study.

Microsoft Set to Overtake Yahoo in Ad Revenues

Microsoft Set to Overtake Yahoo in Ad Revenues

Marissa Mayer can take credit for reversing ad declines. Still, her company will fall out of digital's Top 3 by year's end, according to eMarketer.