- Online advertising expenditure globally could be worth $7.1 billion by 2002, claims new research from Simba Information in the US.
Growth rates, driven by gains in PC ownership and the rise in web usage, will peak in 1999, when Web ad expenditures hit $5.5 billion. This represents a 161.9% increase over $2.1 billion in 1998, according to the Connecticut based research firm Simba in its Web Advertising 1998-99: Market Analysis & Forecast.
Tim Mullaney, the report's author, said: "The biggest reason web advertising continues to explode is that the emerging demographics of the web look more like those of the rest of the world. The web is attracting a significantly higher percentage of women and middle income users than before, opening opportunities for publishers and advertisers whose products are completely unrelated to computing or the act of surfing the internet itself."
Online ad expenditures, which also include media spending on services such as America Online, will reach $7.1 billion in 2002, a 238% increase over $2.1 billion in 1998, the report predicts.
In addition to sizing the web advertising market, the report examines the battle among portals for dominance and its impact on web advertising and the investment climate of the web advertising industry.