Research: Rich media and Video ads gain 22% share, static and search advertising to lose.
9 August, 2008
JupiterResearch recently reported that, even with a lousy economy, the amount of money spent on online advertising should continue to grow at double-digit rates all the way through to 2013. That figures. Online should do better than offline advertising because of the accountability it offers - the ability to track its’ effectiveness is much better than with other types of advertising
20% online growth in 2008
Total online ad spending is expected to increase about 20 percent this year. Until 2013, Jupiter expects total online ad spending to have an annual growth rate of 13 percent. By comparison, offline advertising is only expected to grow 4 percent over the same period. That probably means print will shrink, TV will stabilize and mobile will make up for the overall loss.
Search advertising will slow
Search advertising will stil be the largest category, but according to Jupiter’s research the growth rate for search advertising will slow because of an “inability to tap into small local advertisers and a steady maturation of the paid search market.” This is so logical. Already, Google is at 71% share of search (Compete) and 85% share of ad dollars (Covario). That means that marketers are paying more and more for clicks. If costs per click continue to spiral upward buying it just won’t be cost effective anymore and eventually people will pull back on their pay-per-click budgets.
Display and classifieds look good
Display advertising and classified advertising are expected to do quite well. At first display advertising growth could drop slightly because of short-term economic problems. However, the category will rebound for 14 percent annual growth over the full period of the report. Likewise, classified ad spending is forecast to be 20 percent of the total online ad market, while growing at annual 9 percent rate. Nice, solid performers.
And the winners are… Rich media and Video!
Not surprisingly, the biggest increase is seen in video advertising. Video advertising, in fact, is expected to increase 400% to $5.1 billion in 2013. Jupiter predicts that static and text ads will have lost 22% share by 2013 as advertisers focus on rich media and video. So, if you are thinking about where to invest your money in online advertising, look to sites that are fit to deliver rich media and video advertising for a healthy long-term outlook.
Thanks to Kathryn Schlieben for pointing me to the online research as a side note in her blogpost about kicking clicks, which comes highly recommended :)
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Pingback by Research: Rich media and Video ads gain 22% share, static and search advertising to lose. — Aug 9, 2008 @ 09:31
Thanks for recommending the post Jeroen. One thing is for sure…with this kind of projected growth and diversification on online spend this will continue to be an exciting place to be in the years ahead.
Comment by Kathryn Schlieben — Aug 10, 2008 @ 20:11