Newspaper article The Florida Times Union

Online Advertising to Reach $33 Billion by 2004, Study Says

Newspaper article The Florida Times Union

Online Advertising to Reach $33 Billion by 2004, Study Says

Article excerpt

CAMBRIDGE, Mass.-- Online ad spending will skyrocket to $33 billion worldwide by 2004 from $3.3 billion now, driven by businesses moving advertising dollars from traditional media like newspapers, according to a study by Forrester Research Inc.

Nearly two-thirds, or $22 billion, of the total will be spent in the United States, the world's biggest advertising market, according to the report, which will be issued next week. The figure represents 8.1 percent of projected expenditures for traditional advertising, surpassing magazine, radio and yellow pages spending, and representing a 51 percent annual growth rate.

The increase in online ad spending is being driven by the surging number of Internet users, forecast to grow from 80 million this year to 103.5 million by 2002 in the U.S. alone, according to recent research by Simba Information Inc. With electronic commerce technology also developing rapidly, an increasing number of advertisers are using the Web to sell.

"As the online audience continues to grow and e-commerce accelerates, more and more marketing dollars will be drawn to the Web," Charlene Li, senior analyst in New Media for Forrester, said in a statement. "These trends will be enhanced by the arrival of new technologies that improve the accountability of Web advertising. …

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