As online advertising grows, rich media will grow even faster, study says

Despite lingering concerns regarding the demands usage of rich media places on bandwidth, rich media–-particularly Macromedia Inc.’s Flash technology-–will account for a sharply increasing share of online advertising over the next several years, Jupiter Research reports. While expenditures on online advertising are expected to more than double by 2008, to $14.8 billion from $6.3 billion today, the use of rich media in online ads will more than triple, says Jupiter analyst Nate Elliott. “Flash is by far the predominant rich media technology,” he says. Streaming media will also increase, as rich media and streaming media grow to account for 39% of online advertising by 2008, up from 11% in this year, he adds.

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Following are Jupiter’s projections for online advertising expenditures/combined rich media and streaming media expenditures/combined rich media and streaming media as % of online ads, through 2008:
-- 2003, $6.3 billion/$693 million/11%;
-- 2004, $7.6 billion/$1.14 billion/15%;
-- 2005, $9.5 billion/$$1.995 billion/21%;
-- 2006, $11.3 billion/$2.938 billion/32%;
-- 2007, $13.1 billion/$4.192 billion/32%;
-- 2008, $14.8 billion/$5.772 billion/39%.

Elliot notes that Flash and other forms of media, including streaming video and audio, should not lead to computer performance problems for consumers unless someone is accessing the web on an unusually old computer. Still, he says web site developers should use rich media only where they can improve a consumer’s shopping experience, such as by illustrating a product, but avoid overpowering consumers with too many rich media distractions. “Web site operators should keep their sites nimble and use rich media tools only where they can add value to the shopping experience,” he says. “I wouldn’t advise a site to stay away from using Flash, but to have a good reason for using it.”