JupiterResearch Forecasts US Online Advertising Spending to Exceed $35 Billion by 2012

Business Wire, June 18, 2007

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts US online advertising spending will nearly double by the year 2012, with search and display advertising accounting for the lion's share of expenditures. The JupiterResearch report entitled, US Online Advertising Forecast, 2007-2012, projects total online advertising spending will increase from $19.9 billion in 2007 to $35.4 billion in 2012.

Major drivers fueling this advertising spending include explosive growth in display inventory, increased paid click volume, and better targeting technology.

"The rapid growth of social sites online has accounted for considerable growth and availability of inventory now available to advertisers," said Emily Riley, Analyst at JupiterResearch." Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory."

JupiterResearch found static image and text advertising will be the two most popular display formats in 2007, comprising over two thirds of online display revenue. Growth of text and static ads this year is due to the massive increase in remnant impressions available across social networking sites. However, new publishers will continue to improve their advertising mix, and will shift towards more lucrative rich media and video formats over the next few years.

"This is a time of considerable opportunity for online media properties, interactive advertising agencies, and marketers," said David Schatsky, President of JupiterResearch. "Making the most of the opportunity, though, requires tracking evolving consumer behavior closely, employing appropriate targeting and measurement technologies, and a willingness to experiment with evolving formats and tactics."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology, visit www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch's Advertising & Branding research service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com.