Online Ad Spending Will Reach $52 Billion in 2011
According to Borrell Associates, total online ad spending is expected to surge 14 percent from 2010 to 2011, while local online advertising will grow 18 percent during that time.
Total online ad spending will be $45.6 billion in 2010, according to the company, but will reach $51.9 billion in 2011. This increase will be propelled by “the local sector, anything targeted and everything involving social media.”
Local online advertising will be $13.7 billion in 2010, but will grow to $16.1 billion in 2011.
This means that national online advertising will rise from $31.8 billion in 2010 to $35.7 billion in 2011, a 12 percent increase.
Monroe, La. – El Dorado, Ark., will be the top growing market for local online advertising next year, while Lafayette, Ind., will be the slowest growing market for local online advertising.
Targeted display advertising will grow nearly 60 percent to $10.9 billion in 2011, for national and local combined. National advertisers will increase their use of targeted display ads by almost 50 percent, but local advertisers will more than double their use of these ads, spending more than $2.3 billion on them next year, according to Borrell Associates.
Run-of-site display, however, will continue its steady decline, as sales will decline 14 percent from 2010 to 2011, dipping from $9.5 billion to $8.2 billion for both local and national. National advertisers are expected to drive this decrease.
The national paid search ad format will decline 11.3 percent next year, thanks to lower pricing and church, according to the company. However, local advertisers are set to increase their spending here by more than 10 percent, which should lessen the impact of the national decline.
“In general, local online advertiser trends tend to lag those of the larger national advertisers by about two years, and that is certainly the case for paid search,” according to Borrell Associates.
E-mail advertising, on the other hand, is set to grow 9 percent in 2011 to $16.0 billion for both national and local. The increase here will be almost all due to national advertisers, and white paper marketing will be a major contributor to this surge, especially among B2B advertisers.
Streaming video ads will boom more than 60 percent to $5.6 billion in 2011. Small advertisers are having an easy time getting into the mix thanks to DIY solutions and more affordable tools. “Because of this, two out of every five streaming video ad dollars will come from local advertisers next year.”
Streaming audio will continue to remain in the shadows, as it continues to break through the $1 billion mark.
Online promotions are set to finish above $24 billion next year, up 10 percent from 2010, thanks in large part to online coupons, which are expected to grow 14 percent to $9.1 billion in 2011.
Mobile ad sales will grow more than 20 cents of every online ad dollar spent next year.
Sources:</strong
