Targeted ads to pace 2011 growth online

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.

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