Online Ad Spending Update - eMarketer
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Online Ad Spending Update

Continued double-digit growth

August 13, 2008

eMarketer predicts that advertisers in the US will spend $24.9 billion online this year. That estimate is slightly lower than the one eMarketer released in March 2008, which said that US online advertising spending would reach $25.9 billion in 2008.

US Online Advertising Spending, 2007-2013 (billions)

The lowered estimate still represents an increase of 17.4% over 2007.

"Even as the potent mix of a misfiring economy and consumers' changing media habits shave advertising dollars from traditional venues, such as newspapers and television, Internet ad spending will continue to grow rapidly," said David Hallerman, senior analyst at eMarketer.

US Online Advertising Spending Growth, 2007-2013 (% change)

Increased digital ad spending is coming out of traditional media budgets.

Although TV ad spending is set to increase by 7.1% in 2008 to $72.6 billion, eMarketer predicts such spending will actually shrink in 2009 by 2.6% before resuming 1% to 2% growth in 2010 and 1011.

Newspapers are taking an even harder hit. Borrell Associates predicted in March 2008 that newspaper ad spending in the US would fall from $50.8 billion in 2007 to $45 billion in 2012.

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