Online Ad Spending Projected to Grow by Nearly 20%

• Posted: Thursday, February 01, 2007
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• Author: pradhana
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• Filed under: Internet Advertising, Market Survey, Online Advertising

Some losers, and a winner.

A survey of advertisers who control $6.5 billion in spending projects that the print and broadcast shares of US ad budgets will continue to decline in 2007, while the online ad share grows.

The "Annual Ad Spending Study 2007," from Outsell, shows that US companies plan to increase their online spending by 18% this year, more than for any other major media type.

Looking at the numbers a little closer reveals that advertisers plan to raise search engine advertising by 39%, the greatest increase of any online media method.

The survey also uncovered some troubling news for online ad sellers, however. The pay-per-click (PPC) share of online ad spending is expected to fall slightly in 2007, by approximately 1%, but that is only an indication of a deeper problem.

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