Online advertising in the US is set to exceed $21 billion (£10 billion) this year and could double by 2011, according to a new report.
The survey, conducted by internet marketing research firm eMarketer, revealed that the overall marketing spend by companies for 2007 is expected to have grown by 2.1 per cent but that web spending would see growth of around 26.7 per cent.
Reuters reports that the study also showed that paid search fared the best in most firms online spend with a market share of around 40 per cent forecast for 2011, but that recent instability in the financial market would mean this year would be slower than expected.
"Mainly because of the credit crunch and related economic fallout, internet ad spending will not increase as much in 2007 and 2008 as analysts previously expected," the report said.
"However, reduced spending will be tempered by advertisers buying the low-cost display advertising gobbled up by mortgage companies’ shrinking marketing budgets," it added.
Earlier this month eMarketer predicted that the Newspaper industry would be moving increasingly towards the internet for its marketing needs.
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