In August, eMarketer projected online advertising expenditure to grow by 16 percent between 2008 and 2009 - from $24.5 billion to $28.5 billion. Due to the current financial crisis and economic recession that have gripped, or are about to grip, many Western economies, eMarketer plans to revise downward its online ad spending prediction.

But while online spending may be more subdued in the coming year or so, eMarketer still expects it to grow significantly over the coming few years. This is due to seven (7) reasons that make the Internet an increasingly desirable advertising medium. The Internet:

1. Is more measurable and accountable than traditional channels.
2. Allows for better, more-granular targeting than other forms of media.
3. Is interactive, allowing for a higher degree of engagement with prospects and customers.
4. Accounts for more media time among various, particularly younger, consumers.
5. Taps into the ‘consumer-in-control movement’, enabling marketers to join consumers’ conversations.
6. Features web 2.0 phenomena such as blogs, social networks and Twitter that provide marketers with the ability to insight into consumer behavior and attitudes.
7. Allows marketers to reach prospects throughout the entire consumer buying cycle, from initial awareness, through pre-information-gathering, to purchase and post-sale support.

Source: Geoff Ramsey, “Online Ad Spending Will Keep Growing”, eMarketer, October 27, 2008