Internet Marketing Recovery Forecast for 2010
Display advertising is forecast to grow 13% in 2010 after a dismal performance in 2009 (down approximately 5% in the US), while US search advertising is forecast to grow 13%, up significantly from 2009's roughly flat year, according to research from JP Morgan.
Below, highlights from JP Morgan's Nothing but Net 2010 Internet Investment Guide.
Though display advertising will bounce back in 2010, the challenge of increasing ad space value and reducing inventory will persist throughout the year. However, recovery will likely be driven by an overall macroeconomic rebound as well as a number of other factors, including premium publisher moves to focus on price integrity, better formats of display advertising, more rich media advertising, and better integration with ad content and sponsor bases.
Stabilization of Major Advertising Categories
As the economy improves, a stabilization of major ad categories is forecast for 2010, but will vary by industry. Ranked by year-over year online ad spending growth, the top four industries are retail with 20% growth in online ad spending, followed by telecom (16%), financial services (12%), and automotive (11%).
Search Advertising Growth
On track to grow 13% annually, the search advertising market is forecast to perform more robustly in 2010, driven by higher ad budgets as a whole, an increased share of advertising dollars, and a recovery in CPCs.
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