• by Jack Loechner , Staff Writer @mp_research, January 15, 2002

According to GartnerG2 research from Gartner, Inc., advertising growth remains flat or receding in TV, radio and print, while online advertising revenue is set to grow considerably, but it is only 3 percent of the total advertising market. By 2005, online advertising will be an $18.8 billion market in the United States, up from $7.9 billion in 2001.

"Advertisers are increasingly demanding unique, creative, integrated advertising programs that require online media properties to expand into other forms of interactive media such as interactive TV, wireless and kiosks," said Denise Garcia, research director for GartnerG2Garcia. "Those who do not branch out will see their online advertising revenues decrease and their user bases deteriorate." GartnerG2 research reveals as many as 80 percent of agency requests for proposal include requests for integrated marketing proposals.

Garcia said that media companies "can then use that new (business) user base for advertising by selling ads targeted to business audience at rates significantly higher than those for ads to their consumer audiences."

The report estimates that out of the 2,800 sites selling advertising in the United States, the top 20 sites receive 80 percent of the revenue. GartnerG2 also forecasts that year-over-year growth in online advertising will be just 15 percent by 2005, compared with 100 percent in 1998.

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