More good news for the Internet and domain owners. According to a recently released study by leading market research firm IDC titled U.S. Internet Advertising 2008-2012 Forecast and Analysis, overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012. During that period, Internet advertising will grow about eight times faster than advertising at large.

The report forecasts that the Internet will zoom from being the number 5 medium all the way to the number 2 medium in just five years. It will surpass newspapers, cable TV, and be bigger than broadcast TV as well. Only direct marketing will remain ahead of Internet advertising if the study is correct.

Video advertising will play an increasingly big role in Internet advertising in the years ahead as its revenue is expected to grow by a factor of seven from $500 million in 2007

to $3.8 billion in 2012, a compound annual growth rate of 49.4%. Brand advertisers are expected to shift significant amounts of money into video commercials, primarily from broadcast television.

Karsten Weide, program director of Digital Media and Entertainment, said "What will help drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly, where they want."
(Posted June 11, 2008)