• May 27, 2005

Goldman Sachs has joined the ranks of analysts predicting a bullish year for online ad spending in 2005. In its third annual Internet usage study, released this week, the Wall Street firm said 2005 could be the "breakout year" for online advertising, and that the market would increase by 28 percent to reach $12.3 billion. The report, based on 2,000 surveys fielded by Synovate, also predicts that online advertising could account for as much as 7 percent of total ad spending by 2009--up from between 4 and 5 percent last year--and that search will represent more than 50 percent of all online ad dollars. "Top 200 advertisers have transitioned from testing online advertising to making it a permanent component of their marketing mix," stated the report. -- Wendy Davis