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Kagan Projects 6.2% Online Ad Growth In 2009

Online ad spending will grow by only 6.2% to $24.6 billion in 2009 after posting double-digit growth for the last five years, according to a new forecast by market research firm SNL Kagan.

Search advertising, which has proven resilient during the economic downturn because of its perceived efficiency, is expected to account for 45.3% of online ad dollars. Display advertising, by contrast, will slow from 11% to 4.6% growth in 2009, accounting for 20.8% of spending.

Classified will contribute 13.6%; rich media, 6.7%; online video, 4%; and "other" formats, 9.6%. While still a small portion of online advertising overall, video is projected as the fastest-growing, increasing at an annual rate of 26% from an estimated $978 million in 2009 to $9.9 billion in 2019.

Google, Yahoo, Microsoft and AOL, made up 57% of the online ad market in 2008, excluding payments made to partners. Of those four, Kagan expects Google -- and to a lesser extent, Yahoo -- to be best-positioned to weather the recession.

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1 comment about "Kagan Projects 6.2% Online Ad Growth In 2009".
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  1. Cherie S from SpotMixer , May 22, 2009 at 3:56 p.m.

    Thanks for reporting on this very interesting study. I work with SpotMixer and am not at all surprised to read that online video advertising is projected to be the fastest-growing segment of online advertising. Every day we're attracting more SMB customers who use our low-cost DIY video ad solution to create their own professional-quality ads. For one price, they can
    create as many different versions of an ad as they like, which they can also test inexpensively on cable TV via services like Google TV Ads, with which SpotMixer has a partnership. Check out to
    learn more.