Archive for August 25th, 2010

Targeted ads to pace 2011 growth online

Wednesday, August 25th, 2010

Online ad spending should grow by 14 percent next year, with targeted display ads, social media and video streaming leading the way, says a new projection by Borrell Associates.

Total online spending should amount to $51.9 billion next year, according to Editor & Publisher’s reading of the study.

“The big driver will be targeted display (such as banner ads) advertising, which we expect to grow almost 60 percent in 2011, reaching $10.9 billion for national and local combined,” the memo says. Streaming video, now in reach of even the smallest advertisers, should also grow by 60 percent.

Run-of-site display advertising, which Borrell says is less productive, is expected to decline 14 percent next year to $8.2 billion in local and national spending. National paid search ads will also fall by double digits in 2011, the firm says.