Borrell: Online Ad Spend To Gain 17.5% In 2011

Streaming video advertising will see continued big growth -- increasing more than 60% to $5.6 billion next year.

The Williamsburg, Va.- based media researcher, Borrell Associates, says one of the keys to this continuing strong growth is less-expensive video tools, which can be used by small advertisers. It says two of every five video ad dollars will come from local advertisers next year, according to one report.

Overall, online advertising will continue to outpace the U.S. ad market as a whole. Borrell says local online ad spending will gain 14% in 2011, to $51.9 billion from $45.6 billion this year. Targeted display advertising is expected to see a 60% increase to $10.9 billion overall.

U.S. advertising spending will inch up less than 5% in 2011 to $238.6 billion.

Just looking at local online spending, Borrell projects a gain in 2011 of 17.5%, to $16.1 billion from $13.7 billion in 2010. It says run-of-site display spending will decline nearly 14% to $8.2 billion next year for both local and national. Local run-of-site ads are estimated to decrease only 3% next year.

National paid-search spending will sink 11% -- due to lower pricing and churn. On the other hand, local advertisers will increase paid-search revenues by 10%. Email ad revenues will grow 9% to $16.0 billion for national and local advertisers. National email marketers are contributing a major part of this growth.

Online couponing will contribute strongly to online promotions, growing 10% of 2010 totals to land $24 billion next year. Online couponing will climb 14% to $9.1 billion in 2011.