By: Karl Greenberg Jupiter Communications Revenue Growth For Online Advertising
(Mediaweek) Research released Monday by the consulting firm Jupiter Communications predicts that
online advertising revenues will grow to $28 billion worldwide by 2005, from $4.3 billion in 1999.
The report, released in Cannes, France, at the Global Online Advertising Forum, an event produced
by New York-based Jupiter and Cannes Lions before the International Advertising Festival, said
nearly 6 percent of global advertising revenue will come from the Internet in 2005.
Surging numbers of Internet users - expected to than double within five years to 800 million, from
300 million today - will partly drive the growth.
Evan Neufeld, vice president of international research for Jupiter, warns that marketers vying for a
global online presence will face several challenges, including differences in market sophistication.
For instance, the study says that online ad spending totaled $3.5 billion in North America in 1999,
but in Western Europe, the world's second largest market, it was $400 million, and in Asia just $200
million.
Another challenge is a dependence on regional media buying. 'Media buyers and sellers are historically
hesitant to embrace innovation in media and pricing models,' he said. 'With as few as one in five
publishers offering results-based pricing, the potential efficiencies that the Internet will offer over
traditional marketing media will be limited.'
But he added that opportunities are immense. 'Brands that can innovate and adapt, realize and overcome
traditional inefficiencies in the way in which they communicate with consumers globally will become global
winners, as will media companies and agencies that partner with them to achieve these ends.'
Comments
No comments on this item Please log in to comment by clicking here