U.S online advertising revenue this year will surge 20% to $31.3 billion on the strength of robust display ad spending, according to the latest forecast from eMarketer. That's a jump from the market research firm's prior estimate from the end of 2010, projecting online ad sales would increase just 10% to $28.5 billion in 2011.
Last year, online video increased 40% to 1.4 billion, according to the Interactive Advertising Bureau. Spending on ordinary banner ads is expected to continue growing in 2011 as well, rising from $6.2 billion to $7.6 billion. After rising just 4% in 2009, online display spending bounced back last year with a 24% gain to reach $9.9 billion, accounting for 38% of total online ad revenue. The eMarketer forecast predicts that growth level would be maintained through 2011.
The Internet will account for nearly 20% of all U.S. major media ad dollars spent this year, up from 17% in 2010. By 2015, online advertising is expected to make up nearly 28% of all media ad spending. By comparison, TV ad dollars will hover around 38% for the next five years.
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