2011 Online Ad Market Due to Increase

The ad market has been slowly recovering this year. Many analysts expect to see stronger growth in 2011. This includes Borrell Associates which has just come out with its 2011 forecast. The research concern is predicting a total U.S. ad market of $238.6 billion in 2011 which represents an increase of about 5% over this year.

Borrell analysts say their numbers point to a nearly 14% jump in online ad spending. The growth rate would bring the sector to $51.9 billion next year.  And local online ad spending will surge by 18% or to $13.7 billion, meaning that over $1 out of every $4 spent on online will go to the local market.

How will various components of the online ad world fare next year? According to Borrell, the market could look like this:

  • Targeted display (+60%)
  • Run of site display (-14%)
  • National paid search (-11.3%)
  • Email ads (+9%)
  • Streaming video (+60%)

Borrell analysts also point out that online promotions have not traditionally been the focus of as much spending as online advertising.  But they are looking for the online promotions market to reach $24 billion in 2011. Growth in online coupons largely explains this increase.

In summary, Borrell says, the fastest-​growing segments of online advertising are the local sector, anything targeted, and everything involving social media.

[Source: 2011 Online Ad Growth to Outpace Total Ad Spend Growth. BorrellAssociates​.com. 23 Aug. 2010. Web. 24 Aug. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.