2011: Online ad spend projected to account for 9% of marketing budgets

This just in from JupiterResearch's new report "US Online Advertising Forecast, 2005-2011": by 2011, interactive marketing will equate to 9% of total marketer budgets, with an estimated, comprehensive spend hovering at $25.9 billion. On the more immediate side of the coin, online spend already blew 2005 forecasts out of the water by 40% and is set outperform 2006 forecasts by 21%...and we're only in August of 2006, folks.

What is driving this? Search. Analysts are projecting that Search will account for a whopping 43% of all online spend by 2011. Want $$ to equate to that percentage? 43% of all online spend translates to a very attractive $11.1 billion according to the report.

"The large increase in search advertising is due to new clients experimenting with search and advertisers competing for keyword placement, which drives up prices," said Emily Riley, JupiterResearch's lead author of newly released report. "Additionally, as search advertisers mature, they start using longer lists of keywords, increasing their overall budget."

But the exciting news doesn't stop there. Dramatic growth is projected for rich media and video too, according to MarketingVOX. Rich media ad dollars is set to account for a 21% compound annual growth rate while video is likely to increase at a 27% rate.

Definitely an exciting time to work in interactive marketing!