Online advertising spend forecasts revised

This year, advertisers will spend over $21.4 billion on Internet advertising, rising to $42 billion by 2011. This year's U.S. online advertising spend has been revised down from $21.7 billion to $21.4 billion, and the 2011 estimate has been revised down from $44 billion. The new figures, from eMarketer, indicate analysts are taking in to account current concerns about the economy.

Online budgets will be less affected than traditional media such as television and print, says the report. The total spend in 2007 is expected to rise by about 2.1 percent, whereas Internet advertising is forecast to rise by 26.7 percent, as large companies reallocate budgets online.

“Data from both eMarketer and TNS Media Intelligence indicate that 2007 Internet ad spending will be higher than for radio, as reported in August,” commented eMarketer Senior Analyst David Hallerman. “That is the first time online ad spending will be greater than for any of the four traditional measured media.”

Tags: budget, eMarketer, forecast, online advertising