• by July 26, 2006

JupiterResearch reports that search advertising dollars will outpace display advertising over the next decade. A new report by the research outfit also says that online ad spending will reach $25.9 billion by 2011, representing nearly 9 percent of the total U.S. ad market.

Over the next five years, search spending will see its share of online ad dollars increase to 43 percent in 2011. Search advertising currently represents about 40 percent of the overall online ad market, though many analysts see the growth cooling as online video advertising takes hold in the market.

Jupiter says spending on search advertising is being driven by brand advertisers eager to get in on the keyword action, and more experienced advertisers that are deploying increasingly sophisticated search advertising programs.

Jupiter says display advertising on the Web will claim 36 percent of total online ad spending in 2011, but that the rich media and online video segments of display advertising will take dollars from traditional banner advertising. Spending in the rich media and video segments is expected to increase by compound annual growth rates of 21 and 27 percent respectively over the next five years.

According to Jupiter, online video advertising's best years are to come,--in 2009 and 2011, when video becomes a standard offering of online publishers.