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US Online Marketing Forecast

May 26th, 2005 · No Comments

Charlene Li of Forrester writes that the forecast is for $26 billion in 2010.

  • This is not the return of The Bubble. The growth is coming from marketers having to make tough decisions about allocating scarce advertising dollars in many cases, funding online channels from traditional channels. Back in 1999/2000, spending often came from exuberant spending, fueled by venture money.

  • Its more than just about search. Search is great, its growing, but its not the whole story. In fact, I anticipate that search will become much more integrated into traditional brand advertising witness what Google and Yahoo! are doing in terms of tying CPM- and CPC-based products into the same ad ordering system.

  • Marketers will shift channels away from traditional channels to fund online marketing. The key is perceived effectiveness — most marketers saw traditional channels like TV and print becoming less effective over the next three years. Given the pressure marketers face to make every dollar count, they will shift spending to channels they believe are more effective. But note: this doesn’t mean a wholesale flight away from traditional media — I think it’s more of an adjustment in the marketing mix that takes into account the greater time and influence Internet use plays in our lives.

  • Tags: Search Engines

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