Americans are hoping to see full economic recovery this year, and internet marketers might rejoice that the online ad market is recovering more rapidly than the overall economy, according to eMarketer. The research firm predicts that internet advertising will reach new peaks over the next four years.
As Brafton reported, eMarketer announced last year that online ad spending was set to exceed newspaper ad spend. Now, the company predicts that 2010 online ad spending will show a 13.9 percent increase over 2009, reaching a record-breaking $25.8 billion. The firm projects that Q4 spending hit $7.25 billion.
Internet marketing is expected to continue its ascent in 2011. EMarketer expects there will be double-digit increases for five consecutive years through 2014. Meanwhile, advertising on more traditional media channels is expected to show more modest gains, growing just 2.9 percent annually for the next few years.
“Simply put, marketers increasingly know that to reach their target audience, they need to advertise more online,” says David Hallerman, eMarketer principal analyst.
With this in mind, marketers may want to consider which channels will best serve their prospects. Social media marketing is set to dominate in 2011, with Facebook recently raising $450 million from Goldman Sachs and Groupon poised to take in $950 million in capital funding.