Forecast: Online ads to hit $50 billion by 2011

Cory Bergman January 18th, 2008

Who said there’s money in this web thing? The Yankee Group is projecting online advertising in the U.S. will more than double last year’s spending to hit $50 billion three years from now. Why so much growth? Because the internet currently accounts for 20 percent of all media consumption in the U.S. but just 7.5 percent of advertisers’ budgets. So by 2011, the Yankee Group predicts that 25 percent of media consumption will be on the internet with 15 percent of advertising spending. Reads the report, “Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development.” With that kind of money out there, I don’t think you’ll have that much argument on that point.