JupiterResearch: Online Ad Spending To Reach $35.4 Billion in 2012

U.S. ad dollars flowing online will nearly double by 2012, a JupiterResearch report predicts. Led by search and display, total U.S. ad spending is expected to grow from $19.9 billion this year to $35.4 billion in 2012.

Social networks--although derided for their poor content value--will prove to be especially valuable to the continued growth of online advertising, according to JupiterResearch analyst Emily Riley.

"The rapid growth of social sites online has accounted for considerable growth and availability of inventory now available to advertisers," said Riley. "Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory."

This year, static image and text ads will remain the two most popular display formats, comprising over two-thirds of online display revenue. Jupiter attributes this to a massive increase in remnant impressions available across social networking sites like MySpace and Facebook.

New publishers, however, will continue to improve their advertising mix, and will shift toward more lucrative rich media and video formats over the next few years, Jupiter predicts.

"This is a time of considerable opportunity for online media properties, interactive advertising agencies, and marketers," said JupiterKagan President David Schatsky.

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