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Forrester: Search Engine Marketing Will Grow 33% in 2005

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Forrester Research has just released a new forecast: Online Marketing Forecast 2005-2010, access to the full text report is fee-based but this news release provides a few highlights:

+ Search engine marketing will grow by 33 percent in 2005, reaching $11.6 billion by 2010. Display advertising, which includes traditional banners and sponsorships, will grow at the average rate of 11 percent over the next five years to $8 billion by 2010.

+ Total US online advertising and marketing spending will reach $14.7 billion in 2005, a 23 percent increase over 2004.

+ Sixty-four percent of respondents are interested in advertising on blogs, 57 percent through RSS and 52 percent on mobile devices, including phones and PDAs.

+ While marketers surveyed believe that online advertising channels, such as search engine marketing, online display ads, and email marketing will continue to become more effective relative to traditional channels, barriers that include a lack of online advertising standards and hands-on experience have kept marketers from fully embracing online channels.


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