Online Advertising Market to Reach $50.3B by 2011

Yankee Group just put out a new report about the Online Advertising Market that has staggering numbers called “The Cowboys Dance On… and On: 2007 Online Advertising Forecast”.  Not that $50.3B is a surprising figure, but it is more than double than anticipated for 2007.

The facts:

  • The U.S. online advertising market will reach $50.3 billion in revenue by 2011, more than double the figure for 2007
  • The Internet currently accounts for about 20% of overall media consumption in the U.S.,
  • Today advertisers invest only 7.5% of their budgets online.
  • By 2011, nearly 25% of all media consumption will be online, drawing 15% of the advertising budget, according to the forecast.

We have seen an uptick in spending on online advertising across our client base.  And what’s more important is figuring out what really works and generates valid inquiries, not just clicks.  Having experimented with all sorts of online ads, we have learned through trial and error what works.  It is a quagmire of statistics and information to sort through. 

What are you seeing at your company?  Are you planning to spend more in online ads in 2008 than 2007, or are you spending the same, or less?  If you are planning to do some online ads, where are they?  Banner-type ads, e-newsletters? A mix? 

Do tell, we’d love to hear from you.

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