The IDC Digital Marketplace Model and Forecast shows total worldwide Internet advertising to be $65.2 billion in 2008, growing to $106.6 billion in 2011.
John Gantz, chief research officer at IDC, explained "... (though) Internet advertising is growing at a phenomenal rate, ... (it) is still relatively new and growing from a much smaller base... By the end of the forecast period, spending for Internet advertising will trail direct mail... by more than $30 billion, while spending on TV and print ads will each be nearly twice as great as for online ads... The long-term opportunity for Internet advertising can be seen in the disparity in per capita spending: total advertising revenues... (are) more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user."
In projecting advertising types, the report says:
"Marketers already recognize that online advertising must be incorporated into any comprehensive ad strategy. This will continue to drive growth in online ad spending well beyond the forecast period," said Karsten Weide, program director, Digital Media and Entertainment. "However, there is still a lot of experimentation underway within the category as marketers seek the optimal mix of ad types to reach their target audience. This will fuel spending for all types of online ads."
Additional expenditure highlights from the study include the following:
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