Only 3%, But Making A Move

Only 3%, But Making A Move

Although advertising in print, TV and radio will remain relatively flat over the next few years, GartnerG2 predicts that the US online advertising market will grow to $18.8 billion by 2005. Nonetheless, as GartnerG2 points out, online advertising represents only 3% of the total US ad market.

US Online Advertising Market (in billion $)
2001 - $7.9
2002 - 11.4
2003 - 14.7
2004 - 17.2
2005 - 18.8
Source: GartnerG2, Dec 2001

GartnerG2's estimates are the result of interviews with online advertisers, analysis of data collected by Evaliant and NetRatings, and finally the review of SEC filings. Gartner also mentions that among the 2,800 websites that are selling ad slots in the US, the top 20 gain 80% of e-ad revenue.

Research firm estimates for e-advertising in 2001 vary greatly. Salomon Smith Barney believes $5.9 billion in online ad revenue was generated in 2001 whereas Datamonitor pegs the number at a much higher $12.6 billion for the year. eMarketer's estimate of $7.3 billion is much closer to GartnerG2's as well as that of IDC and Goldman.

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