Forrester Research just released the “US Online Marketing Forecast: 2005 To 2010” report.

Includes data from an online survey of 99 leading marketers and four forecasts: US Online Advertising And Marketing Spending, US Search Marketing Spending, US Online Classifieds Advertising, and US Email Marketing Spending.

Some key points:

  • Search engine marketing will grow by 33 percent in 2005, reaching $11.6 billion by 2010. Display advertising, which includes traditional banners and sponsorships, will grow at the average rate of 11 percent over the next five years to $8 billion by 2010.
  • New advertising channels will draw interest and spending from marketers. Sixty-four percent of respondents are interested in advertising on blogs, 57 percent through RSS, and 52 percent on mobile devices, including phones and PDAs.
  • Marketers are quickly losing confidence in the effectiveness of traditional advertising channels and feel that online channels will become more effective over the next three years. Seventy-eight percent of survey respondents said that they think search engine marketing will be more effective, compared with 53 percent of respondents who said TV advertising would become less effective.
  • The only nondigital advertising channel to reach the same level of confidence as online channels with marketers is product placement – only 8 percent of respondents believe that product placement will become less effective over the next three years.

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