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Online Ad Spending Continues to Grow

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During the Dot Com Boom, many companies planned their online revenue models around free services supported by advertising, and for many, this model didn't pan out because many traditional ad agencies - and their big brand, big spend clients - did not embrace the online advertising opportunities available at the time. However, a new article from CNET reports on the current status of online advertising, including how it has cycled back to a point where many new services are expected to be supported through online advertising and where big brands are a major part of the expected growth of online ad revenue.

Other points in the article include that online advertising growth is expected to continue, with online ad spend increasing 24.4% this year. By 2010, US online ad spending is expected to grow to $23.5 billion while worldwide online ad spend will grow to $55+ billion. And search advertising continues to play a major role, currently 40% of the US online ad spend. By 2010, search advertising is expected to be worth $7.5 billion, up from $4.2 billion in 2005.

The article can be viewed here.

Postscript: The Wall Street Journal has an article today about big brands advertising online in Brand Marketers Return to the Web,
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