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Online Advertising To $6.3 Billion In 2003 Powered By Paid Search

Online Advertising To $6.3 Billion In 2003 Powered By Paid Search

According to the latest findings from Jupiter Research, presented at the Jupiter/ClickZ Advertising Forum in New York City, explosive growth in paid search, increasing almost 50% to $1.6 billion in 2003, will power a modest recovery in online advertising. Jupiter Research released the industry's first independent paid search projections as part of its online advertising forecast that show online display ad sales continuing to shrink 6%, to just over $3 billion. Overall, online advertising will grow 10% this year, to $6.3 billion.

"Paid search's impact reaches way beyond its dollar volume. The players, the tactics and the technologies of search are the focal point of critical digital marketing trends like dynamic pricing and contextual advertising," said Jupiter Research analyst Gary Stein.

While 2003 is the year of paid search, other online advertising sectors will pick up shortly. "Online display ad sales will turn around beginning in 2004," said Jupiter Research VP and Research Director David Card. "Better inventory control by publishers and a broadband kicker will push online display advertising sales up over 15% next year, and over 20% in 2005 and 2006," stated Card.

Jupiter Research forecasts that online advertising, including paid search, display ads and classifieds, will grow to $14.8 billion in 2008, when online advertising will be 6% of the size of total U.S. ad spending.

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