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BizReport : Advertising archives : January 03, 2011

Forecast: 10% growth in online ad revenue this year

2011 is here and it looks to be a decent year for online marketers. According to S&P Equity Research, online ad revenue will increase by about 10% this year, that should push ad revenue to just over $28 billion in 2011.

by Kristina Knight

S&Plogo.gifAlthough the increase is a slight decline or slowing in growth, with many consumers still out of work, it is a good sign that growth is expected to at least continue in 2011.

Ecommerce may lead the way in revenue growth, with S&P's researchers expecting Amazon to see at least 25% growth. They also expect Apple to take iTunes 'into the cloud' which should give consumer the ability to connect anywhere at any time.

Social media is also expected to have a good year, with the potential of Yahoo entering the international social media fray a possibility

And another thing to look forward to: content spending. According to recent Pew Research report finds that, in 2010, two-thirds of online consumers bought online content. Beginning early in 2010, content hubs began charging consumers to read full articles or watch video content and rather than balk, it seems many consumers were ready to pay to stay up to date with news and information. If that trends continues, look for more content hubs to bring back paywalls and other forms of content subscription.

In fact, beginning this month, The New York Times is expected to institute a pay-to-read format, with readers given unlimited access to the site for a fee. The online pay schedule is for readers who do not have paper subscriptions.

What types of content are consumers most likely to pay for? 33% of consumers report they've paid for music or software content online, 21% have paid for mobile apps, 18% for magazine/newspaper articles, 16% have purchased videos/movies or TV content and 15% have purchased ringtones.

Tags: ad revenue, advertising forecast, ecommerce, online advertising, online content, paid content, Pew Research, S&P, Standard & Poor's

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