eMarketer's 10 Key Predictions for 2007

• Posted: Tuesday, January 02, 2007
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• Author: pradhana
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• Filed under: Internet Advertising

What to watch in 2007....

1. Online Ad Spending Will Hit $20 Billion
2. Some Money and Lots of Hype for Online Video Advertising
3. Social Networks Are Set for a $1 Billion Windfall
4. Downloadable Games Will Get Hotter
5. Thirty-Seven Million Strong: A 'Minority' Bigger than Canada
6. Mobile TV Arrives
7. US B2C E-Commerce Will Cruise Past $200 Billion
8. The Retail Power of Word-of-Mouth
9. Broadband Services Will Matter as Much as Speed
10. DVRs Pump Up TV Viewing

Online Ad Spending
Total US spending on Internet advertising will reach at least $19.5 billion in 2007. This is 19% more than total spending in 2006. This rate of growth is sharply down from the 30% or more that has been the norm for several years. However, even this reduced level of year-on-year growth would be considered spectacular for most industries. With total US advertising spending projected to grow by a mere 1.4% in 2007, the shift to the Internet is clearly set to maintain its heady momentum in 2007.

Online Video Advertising
Internet video advertising will get more media play than dollars in 2007. eMarketer projects that spending on this format will total $775 million in 2007. To put this figure in perspective, remember that it represents only 4.0% of projected US online ad spending. Although marketers are increasingly keen on including video in their online ad campaigns, they will continue to face a shortage of appropriate premium placements.

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