eMarketer revises 2008 Internet ad spend forecasts

In October, 2007, eMarketer predicted the Internet advertising spend for 2008 would be $27.5 billion. That figure has now been revised down to $25.8 billion.

Despite the drop, the new total represents a 23% increase on last year’s spending. eMarketer predicts that total U.S. advertising spending will grow by 3.3% in 2008.

"While a foundering economy will certainly affect online ad spending, accounting for the revised estimate, the Internet will support continued ad spending growth even as other media may falter," stated eMarketer.

Search will account for a large proportion of Internet advertising spend this year, says eMarketer, accounting for around 40%.

In the coming few years eMarketer predicts a drop in Internet advertising growth, remaining at around 16% until a recovery in 2012. “By 2012, an anticipated boom in online video advertising, combined with continued strength in more-established Internet ad categories such as paid search and classifieds, and a recovered economy, will mean spending growth greater than 20% for the first time since 2008," said David Hallerman, senior analyst, in a recent press release.

Tags: advertising budget, eMarketer, online advertising, video advertising