U.S. Online Display Advertising To Rise in 2010
By Anna Johnson on January 10th, 2010JPMorgan analyst Imran Khan predicts that both search advertising and online display advertising in the United States will grow significantly in 2010. Khan sees U.S. search advertising growing by 13.2 percent to $16.6 billion (after just 0.8 percent growth in 2009), whilst display ad sales are tipped to grow by 10.5 percent to $8.3 billion in 2010.
Meanwhile, Imran Khan expects U.S. mobile advertising to grow 45 percent to $3.8 billion, consisting of $3.2 billion SMS advertising, $253 million mobile display advertising, and $321 million mobile search advertising.
Khan attributes the rebound in display ad sales to an improving economy and a reduction in the glut of display ad inventory on higher quality sites. In this regard, such sites as AOL and CBS have removed their premium ad inventory from ad networks (which typically offload ad inventory at discounted prices).
On top of this, advertisers, digital agencies and web publishers are all embracing more diverse, captivating and better-performing forms of display advertisements.
Even so, you need only consider how much JPMorgan expects Internet marketers to pay for online ads to know which – out of search and display advertising – is considered more effective. According to JPMorgan, the average display RPM (revenue per 1,000 impressions) will be $1.92 in 2010, whilst the average RPS (revenue per 1,000 searches) is forecast to be $70.14.
In mobile advertising, text messaging ads far outweigh both display and search in terms of ad sales. Total U.S. mobile advertising is estimated at $2.6 billion for 2009, up 62 percent over the previous year. This comprises $2.3 billion for text messaging ads… far more than the $178 million for mobile search ads, and the $140 million for mobile display ads (both up 80 percent last year).
