Worldwide Internet Ad Spend Grows at Phenomenal Rate

IDC’s Digital Marketplace Model and Forecast estimates total worldwide Internet advertising at $65.2 billion in 2008, climbing to $106.6 billion in 2011.

However, compared to traditional advertising, Internet advertising still trails by substantial margins. For instance, it trails direct mail by over $30B, and spending on TV and print ads is nearly twice as much as online ad spending.

The IDC report shows the following:

Keyword ads will dominate Internet advertising through 2011, getting over one-third of the annual online ad spending budget worldwide.

Display ads are next in popularity with over 20% of annual worldwide spending through 2011.

Classifieds are next, with almost 19% of all online ad spending per year.

Rich media ads will grow at a compound annual growth rate (CAGR) of over 50% during the 2007-2011 forecast period.

Additional highlights from the study:

The US will lead the world in both total advertising spend and online ad spend throughout the forecast period with expenditures of over $265 billion and $45 billion respectively in 2011.

Over $5 billion will be spent worldwide in 2008 in each of the top four categories of online ads: adult content and gambling, information, electronics, and computing. These categories will continue to lead in 2011.

Source: IDC