Report: Internet ad spending will hit $65 b this year

Worldwide spending on Internet advertising is projected to total $65.2 billion this year and account for nearly 10 percent of all ad spending, according to a new report.

The report is from IDC, a Framingham firm focused on providing global market intelligence.

IDC said its Digital Marketplace Model and Forecast projects 15- to 20-percent annual growth in the coming years, and the Internet's share of total ad spending will reach 13.6 percent by 2011, when worldwide Internet ad spending is expected to be $106.6 billion.

"Compared to more mature types of advertising, Internet advertising is growing at a phenomenal rate," John Gantz, chief research officer at IDC, said in a statement. "But Internet advertising is still relatively new and growing from a much smaller base. By the end of the forecast period, spending for Internet advertising will trail direct mail, the third largest form of advertising, by more than $30 billion, while spending on TV and print ads will each be nearly twice as great as for online ads. The long-term opportunity for Internet advertising can be seen in the disparity between per capita spending. Total advertising revenues equate to more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user."

According to IDC's report, keyword ads will remain the dominant type of Internet advertising in the next few years, capturing more than a third of annual online ad spending worldwide.
(By Chris Reidy, Globe staff)