US ad spending will continue to shift towards online advertising in 2007, say a report published by eMarketer. The online advertising, however, will be lower than the recent pace of growth of about 30 percent to 19 percent this year. The report says that the total online spending in the current year is expected to be around $19.5 billion. Moreover, the increase in online spending is six times greater that the rise in overall advertising, which is set to grow at the pace 3.2 percent.
The fastest-growing Internet ad format is video, which is expected to witness a jump by 89 percent in the current year. The report further speculated that US advertisers will pay about $8.3 billion on paid search advertisement, up by $1.3 billion in the year 2006.
The report further concluded that paid search will continue to claim the maximum share of online ad spending over the next several years, while spending on rich media and video ad formats is expected to enjoy the fastest growth.
