Display Advertising To Overtake Search in 2015 [REPORT]

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The researcher had predicted the market would grow 10.5%, but now it expects a 20.2% rise and projects that display will overtake search as the largest online ad spending category by 2015.

That increase, to $31 billion, compares to $26 billion in 2010, when the market grew 14.9%. In a statement, David Hallerman, principal analyst at eMarketer, said the increased importance of online as a channel and the variety of online ad formats are fueling the growth.

In particular, display advertising has exceeded 2011 spending projections. This year such advertising will rise 24.5% to $12.3 billion, according to eMarketer. Meanwhile, search advertising is expected to grow 19.8%, to $14.4 billion. Marketers’ increased use of Internet advertising as a branding vehicle -- rather than for direct sales -- will prompt faster growth in display, eMarketer projects.

Overall, eMarketer predicts Internet advertising will account for 20% of the total market, up from 17% in 2010. By 2015, such advertising will account for 28% of all U.S. ad spending.

The findings jibe with recent figures reported by the IAB that showed a 23% jump in Internet advertising revenues for the first quarter. IAB didn’t break out display advertising spending for the first quarter. A report by IDC also found that display was growing faster than search in the first quarter.