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Liz Jaques 

eMarketer raises 2010 online ad forecast

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eMarketer has upgraded its online ad forecast for 2010, estimating that US online ad spend will now increase 13.9% to $25.8 billion for the full year.  Next year, the group predicts a 10.5% increase, followed by double-digit growth every year through to 2014 (when spending will reach $40.5 billion).

"It may seem ironic, but marketers' economic concerns are leading them to spend more for online advertising," said David Hallerman, principal analyst at eMarketer. "This trend reflects how most forms of internet advertising are now seen as more of a 'sure thing' than most traditional media."

Online video advertising will remain the fastest-growing format throughout the period, while search will continue to get the most money, according to eMarketer.

The group expects increases in online spend to far outpace traditional media spending.  In 2014, eMarketer estimates total media ad spending to hit $188.5 billion, up from $168.5 billion this year.

"The slight upticks in 2010, 2012 and 2014 reflect the now unlimited political ad spending by corporations," said Hallerman. "Some of those dollars will be migrating online, although TV will remain by far the biggest political ad spending recipient."

Faster growth online is likely to boost digital from 15.3% of total US ad spending in 2010 to 21.5% by 2014, according to eMarketer.

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