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We may well
call this the “Internet advertising” era, if we look at IDC’s latest report on the
U.S. market: online advertising is expected to double from $25.5 billion last
year to $51.1 billion in 2012, the market research firm predicted on Friday.
Within the next
four years, online advertising is expected to become second after direct
advertising, from the fifth place it occupies today. According to IDC, the
online video advertising will also increase in popularity in the United States.
Furthermore,
the revenue from video advertising is expected to grow sevenfold from $500
million now to $3.8 billion within four years. We are now looking at a tendency
to shift from cable TV and broadcast television classic advertising to online
video advertising, IDC says.
And it’s all
because of the consumers, Kirsten Weide, program director for IDC’s digital media
and entertainment unit explained: consumers have begun to realize that as opposed
to the TV, internet video allows them to watch what they want, when they want,
how many times they want.
The forecast
for the United States shows a significant growth in online advertising revenue,
despite more pessimistic reports that showed stagnation over the past two years
in this business.
Earlier this
month, an Interactive Advertising Bureau report for the United States unveiled
that search advertising accounted for 41 percent of the overall online spending
last year, up 1 percent from 2006.
Search
advertising appears to keep the secret to online advertising, remaining the
dominating form on the market, and led by Google with 70 percent.
As online
advertising began developing and will continue to do that in the years to come,
Microsoft, Yahoo and others are expected to make bigger efforts to take a piece
of Google’s pie.
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