Online Ad Spending Rebounding, Led by Videos
Online ad spending appears to be boncing back from the recession, as eMarketer expects spending to reach $31.3 billion in 2011 — a 20 percent hike from last year. eMarketer predicts this figure will reach $50 billion in the U.S. by 2015.
eMarketer projects ad spending online to increase 17.6 percent in 2012, 12.0 percent in 2013, 10.4 percent in 2014 and top off at an increase of 8.8 percent with a total budget of $49.5 billion by 2015.
Spending on online video is forecasted to increase more than 52 percent over last year. Video is the fastest-growing ad medium in the field and shows no signs of slowing down. It's expected to become the third largest online ad format by 2013. Spending on sponsorships is also seeing a resurgence, as it's projected to grow 26.4 percent, followed by banner ads (22.1 percent), search (19.8 percent), classifieds and directories (15.7 percent), rich media (7.9 percent), and lead generation (6.1 percent). Ad spending on email on the other hand is expected to decrease 16.5 percent.
“As consumers continue to increase their time spent online and as a resurgent economy continues to bolster ad budgets, we’re going to continue to see an influx of dollars toward the internet," said eMarketer Principal Analyst David Hallerman in a company press release. Hallerman also noted that social media, video and ad formats on other channels are greatly contributing to the rise in spending.