The growth of online spending and website promotion is set to boom in 2011 and beyond, breaking the $40 billion mark by 2014, eMarketer believes.
Online advertising spending set to break new records
Despite a downturn in 2009, spending on website promotion and other managed emarketing techniques will have risen by 13.9 per cent in 2010 to reach a record $25.8 billion (£16.7 billion), according to eMarketer.
Additionally, ad spending will hit even greater peaks further down the line, as during the next four years such outgoings will rush past the $40 billion barrier by 2014, it claimed.
eMarketer referenced the broken-down quarter-by-quarter statistics presented by the Interactive Advertising Bureau and PricewaterhouseCoopers, which saw the country taking an average of £3 billion to £4 billion each quarter, though with the expected boom coming in the final quarter.
David Hallerman, a principal analyst and author of the new report for eMarketer entitled US Ad Spending: Online Outshines Other Media, said: “A spending peak in Q4 is likely, primarily because Q4 has been the biggest quarter for US online ad spending every year but one since 1999.
“With multiple ways to go online and with more activities once they get there, people spend more time online. Simply put, marketers increasingly know that to reach their target audience, they need to advertise more online.”
The increase in managed emarketing spend will see the sector experience double-digit growth for five consecutive years, and the internet will remain the only medium that will experience spending increases of this high nature.
eMarketer also discovered that the contribution to GDP of internet ad spending increased by ten per cent or more every quarter from Q3 2003 through to Q1 2008, recovering in Q3 2010 to the same statistic after the recovery from the recession.
This week, the Nielsen Company concluded that Procter & Gamble was the UK’s biggest-spending advertiser, pushing its outgoings on managed emarketing and website promotion from £158 million to £195 million over the course of 2010.
Living Streams “Improving clients’ profitability through better use of the internet”.