Online Advertising: Looking Back and Ahead: eMarketer

February 04, 2005, USA — Online advertising spending will comprise a larger part of total ad spending in 2005, according to eMarketer and other research firms.

eMarketer’s latest data for advertising spending finds that total media ad spending equaled $264.2 billion in 2004, with online ad spending comprising $9.5 million, or 3.6% of that total. In 2005, total media ad spending will rise to $278.5 billion, with the online segment accounting for $11.5 billion in spending, or 4.1% of the total.

Recent data from Merrill Lynch similarly finds that online advertising spending accounted for 3.7% of total ad spending in 2004, and will constitute 4.2% in 2005.

Avenue A/Razorfish reports that 32% of the online ads purchased through the company in 2004 were featured on travel Web sites, while 15% appeared on health Web sites, 12% on reference sites and 9% on either lifestyle, news or entertainment sites.

TNS Media Intelligence finds that overall ad spending grew by 10.6% in 2004, and will grow by 5.1% in 2005, with a strong first half of the year (6.9% growth) making up for a weaker second half (3.5% growth, with only 2% growth in Q3.)

The Internet will help drive that growth, and will experience the greatest expansion in ad spending, 11.2%, of any medium, including TV, in 2005.

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