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Other aspects of the report include: • The user revolution Piper Jaffray believes that the advertising world is going through a revolution. As passive consumers become more informed about purchase decisions, and take control of the consumption of content, this will cause a significant rise in the prominence of the internet as a ‘major content consumption and marketing medium’. • 'Communitainment' With the popularity of social media sites, the internet has become a principal medium for community, communication, and entertainment, hence the term. Piper Jaffray predicts that this will partially replace other forms of media, from magazines to television. • The internet is mainstream The internet is now a mainstream media outlet and rivals traditional media for reach and advertising revenue. By 2011, the report predicts that the internet will be second only to television. • Search will dominate Searching is the second most popular activity on the web, behind email. The report identifies five key trends in search: <blockquote> <ol> <li>Search engines are replacing portals </li> <li>Search is becoming a branding tool </li> <li>Google’s dominance is increasing; </li> <li>Local search remains a looming opportunity </li> <li>New search technologies are likely to expand the field. </li> </ol> </blockquote> • Ad networks Due to internet fragmentation, online ad networks are experiencing increased demand. The report predicts that affiliate marketing will remain a vital marketing channel for advertisers due to its high ROI proposition. For the global ad figure of $81.1bn, the report bases its predictions on growth of internet use worldwide, and that the adoption of online advertising is occurring at a faster rate worldwide than in the US. In the UK, for instance, the internet accounts for around 10% of total ad expenditure, and this is expected to reach 20% in the next three years. Piper Jaffray says the explosion of niche content online will also drive online spending by smaller advertisers on ad networks. <a href="mailto:blog@e-consultancy.com">blog@e-consultancy.com</a>

<FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Quote>Other aspects of the report include:</Quote> </Paragraph> <Paragraph> <Emphasis>• The user revolution<LineBreak /></Emphasis> <LineBreak />Piper Jaffray believes that the advertising world is going through a revolution. As passive consumers become more informed about purchase decisions, and take control of the consumption of content, this will cause a significant rise in the prominence of the internet as a <Quote>‘major content consumption and marketing medium’</Quote>. </Paragraph> <Paragraph> <Emphasis>• 'Communitainment'<LineBreak /></Emphasis> <LineBreak />With the popularity of social media sites, the internet has become a principal medium for community, communication, and entertainment, hence the term. Piper Jaffray predicts that this will partially replace other forms of media, from magazines to television. </Paragraph> <Paragraph> <Emphasis>• The internet is mainstream<LineBreak /></Emphasis> <LineBreak />The internet is now a mainstream media outlet and rivals traditional media for reach and advertising revenue. By 2011, the report predicts that the internet will be second only to television. </Paragraph> <Paragraph>• <Emphasis>Search will dominate </Emphasis></Paragraph> <Paragraph>Searching is the second most popular activity on the web, behind email. The report identifies five key trends in search: </Paragraph> <Block> <List Type="Numeric"> <ListItem>Search engines are replacing portals </ListItem> <ListItem>Search is becoming a branding tool </ListItem> <ListItem>Google’s dominance is increasing; </ListItem> <ListItem>Local search remains a looming opportunity </ListItem> <ListItem>New search technologies are likely to expand the field. </ListItem> </List> </Block> <Paragraph>• <Emphasis>Ad networks</Emphasis></Paragraph> <Paragraph>Due to internet fragmentation, online ad networks are experiencing increased demand. The report predicts that affiliate marketing will remain a vital marketing channel for advertisers due to its high ROI proposition.</Paragraph> <Paragraph>For the global ad figure of $81.1bn, the report bases its predictions on growth of internet use worldwide, and that the adoption of online advertising is occurring at a faster rate worldwide than in the US. </Paragraph> <Paragraph>In the UK, for instance, the internet accounts for around 10% of total ad expenditure, and this is expected to reach 20% in the next three years. </Paragraph> <Paragraph>Piper Jaffray says the explosion of niche content online will also drive online spending by smaller advertisers on ad networks. </Paragraph> <Paragraph> <Link URL="mailto:blog@e-consultancy.com" Window="New">blog@e-consultancy.com</Link> </Paragraph> </FormattedContent>

2007-03-07T14:46:00+00:00

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Growing internet usage will boost global internet advertising revenue to $81.1bn (£41.9bn) by 2011, according to new research from Piper Jaffray & Co. The figure is more optimistic than a report by PricewaterhouseCoopers last year, which predicted that <a href="http://www.marketingvox.com/archives/2006/06/21/pwc_entertainment_and_media_to_reach_18_trillion_advertising_521_billion_in_2010/">internet ad revenue would reach $51.6bn in 2010,</a> based on an annual growth rate of 18.1%. Piper Jaffray's report predicts growth of 21%.

<FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Growing internet usage will boost global internet advertising revenue to $81.1bn (£41.9bn) by 2011, according to new research from Piper Jaffray & Co.</Emphasis> </Paragraph> <Paragraph>The figure is more optimistic than a report by PricewaterhouseCoopers last year, which predicted that <Link URL="http://www.marketingvox.com/archives/2006/06/21/pwc_entertainment_and_media_to_reach_18_trillion_advertising_521_billion_in_2010/" Window="New">internet ad revenue would reach $51.6bn in 2010,</Link> based on an annual growth rate of 18.1%. Piper Jaffray's report predicts growth of 21%.</Paragraph> </FormattedContent>

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Econsultancy has published an <a href="http://econsultancy.com/reports/online-advertising-networks-buyers-guide">Online Advertising Networks Buyer's Guide</a> which contains an examination of this marketplace and profiles of 23 leading networks. We have also produced an <a href="http://econsultancy.com/reports/online-advertising-survey">Online Advertising Survey</a>, based on a survey of advertisers and agencies. For more stats and charts, see also our <a href="http://econsultancy.com/reports/internet-advertising-statistics">Online Advertising Statistics compendium</a>.

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Online ad revenue 'to surpass £40bn by 2011' false

2007-03-08T14:25:00+00:00

online-ad-revenue-to-surpass-40bn-by-2011

2009-04-28T22:44:24+01:00

2009-10-13T08:54:56+01:00

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