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Online Advertising Expected to Reach $25.1 Billion in 2010

Posted on Jun 29, 2010

Yes, you did read the headline correctly. Businesses are recognizing the relevance of Internet marketing and are allocating their money accordingly.

Based on a report by the digital research company, eMarketer, spending for online advertising is expected to increase 10.8 percent in 2010 to $25.1 billion. This figure is almost twice as much as the previous estimate of 5.5 percent. The report states that the reasons for this growth could be related to the faster than anticipated rebound in the U.S. economy, along with the increased spending in the first quarter among businesses.

Not surprisingly, the major search engines will take the biggest chunk of online advertising dollars. eMarketer estimates that in 2010, Google, Yahoo, Microsoft and AOL will grab 58.5 percent of online spending on ads in the United States.

According to the report, Google will take the largest share of online advertising. Just in the first quarter, Google’s revenue increased by 21 percent. Most of the online dollars are going towards search advertising, which is a major sector of Google’s business.

eMarketer also predicts that online video advertising will be the next big category. What does that mean for you? It means you need Web video!