US online advertising market revenue will increase

The US online advertising market will reach $50.3 billion (£25.8 billion) in revenue by 2011, according to recent research.

The report, conducted by the Yankee Group, cited the increase of the online audience as a determining factor in this growth, with 76 per cent of US households now having internet access.

It also discovered that, while 20 per cent of overall US media consumption is accounted for by the internet, advertisers currently invest only 7.5 per cent of their budget online.

Daniel Taylor, senior analyst at Yankee Group, commented: "With internet connectivity nearly ubiquitous, online advertising growth is inevitable.

He said that, as the internet is still a relatively new medium, there is much room for growth, and advertisers will have to reflect this in their future online ad budgets.

"Steady growth in online advertising will require publishers to invest extensively in new media and advertising product development.

"You have to spend money to make money, and the proverbial buck will stop with the publishers," he added.

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