August 25, 2010, 12:33 PM

Online advertising set to grow 14% in 2011

New projections from Borrell Associates predict 9% growth in e-mail ads.

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Online advertising, including ads delivered to mobile devices, will increase 13.8% over the next year, to $51.9 billion in 2011 from $45.6 billion in 2010, according to consulting and market data firm Borrell Associates Inc.

The growth in online advertising will outpace the growth for all advertising, which Borrell projects will increase about 5%, to $238.6 billion in 2011.

The fastest growing segments of online advertising include targeted and banner ads, local advertising and advertising that involves social media. Local online advertising, for instance, will increase 17.5%, to $16.1 billion next year from $13.7 billion.

 

E-mail advertising, meanwhile, will increase 9%, to $16 billion in 2011. Most of the spending will come from national advertisers, with only 3% coming from local advertisers, Borrell says.

Ads delivered via streaming videos will experience 60% growth, to $5.6 billion. “More do-it-yourself and less expensive tools put this ad format within the budget of even small advertisers,” the report says, adding that two of every three dollars spent on this ad format will come from local advertisers.

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