Internet Advertising Forecast to Surge

Posted on July 14, 2006

The Media Post reports that advertising industry forecaster Robert Coen is predicting a surge in Internet advertising. Coen expects a large 25% increase over 2005.
Coen, senior vice president and director of forecasting for Universal McCann, now predicts that Internet spending, excluding search, will surge to $9.705 billion this year, marking a 25 percent increase from 2005. In the first quarter alone, online ad spending grew more than 19 percent from last year, according to Coen. Last December, he projected that online ad spending for the year would total $8.669 billion, representing a growth rate of just 10 percent.

Coen routinely excludes search from his calculations of online ad dollars; the Interactive Advertising Bureau pegs search as representing about 41 percent of online ad revenues.

Some other forecasters have predicted that online ad spending, including search, will total around $20 billion this year. PQ Media Tuesday pegged this year's total online ad spend at $19.96 billion--a 26 percent surge from 2005; TNS Media Intelligence president-CEO Steven Fredericks also recently estimated that overall Web ad spending will amount to around $20 billion. eMarketer forecasts a slightly more conservative $16.7 billion online ad spend for this year.
People continue to spend more of their time online. They also use the Internet for more and more services including online shopping, billpaying, etc. It is only logical that the advertising would eventually follow people over to the Internet.