Net Ad Revenue Growing, Expected To Be #1 By 2011
August 8, 2007 at 2:14 PM (PT)
MEDIAPOST reports on a study claiming that within four years, Internet advertising will generate almost $62 billion, surpassing newspapers to become the country's leading ad medium. The study, conducted by private equity firm VERONIS SUHLER STEVENSON in its "21st Communications Industry Forecast," also predicts that radio will certainly get a taste of the increased Net revenue.
After generating approximately $38 million in revenue last year, radio websites are expected to take in $56 million this year, an increase of 48.5%. By 2011, that number is predicted to grow to almost $170 million -- a compound annual growth rate of 34.8%.
In comparison, advertising revenue on newspaper websites is expected to grow by a little over 25%. In fact, the only two media that are expected to enjoy a higher ad revenue growth rate are social networking sites and blogs.
On the other hand, radio has a lot of catching up to do. It currently trails all the other media in Net ad revenue.