Online Advertising Dollars on the Rise

If you’re looking for justification to support an increase in your online marketing spending… look no further. This article lays out the numbers from a new Forrester report.

Some quick stats:
Search engine marketing will grow by 33% in 2005 and reach 11.6 billion by 2010. Contrast that with the projected numbers for display advertising of 11%, expected to reach $8 billion by 2010.

In the study, 78% of the respondents said they think that search engine marketing will be most effective over the next 3 years, compared to 53% who said that TV advertising would become less effective.

The study projects that in this year (2005) the dollars spent for online advertising should reach $14.7 billion, a 23% rise over 2004.

Interestingly (and not really a surprise), the study shows that about half of the companies polled said that they plan to take money from their traditional ad campaigns to pay for the increase in online spending.

Very interesting numbers and something to think about as you plan your 3rd and 4th quarter budgets for this year.