Online Ad Spending Finally Projected To Grow

American advertisers will spend $6.3 billion to pitch their products online this year, up 4.8% from 2002, according to a forecast by market-intelligence firm eMarketer. That would be the first year-over-year increase since the dot-com boom days of 2000.

Spending will continue to increase through 2006, eMarketer says.

U.S. online ad spending will account for 2.5% of total media spending in 2003. While this percentage is unchanged from 2002, it will rise to 2.8% in 2006.

Greg Stuart, CEO of the Interactive Advertising Bureau, says the increase in online ad spending provides tangible proof that interactive advertisements are effective as a marketing vehicle, and he predicts a period of stable and sustained growth in the next few years.

Total U.S. ad spending will reach $248 billion this year, up 4.9% from 2002, eMarketer says. Other researchers put online ad growth rates at between 1.5% and 6.0%, eMarketer says, adding that its predictions are relatively conservative, reflecting cautious optimism for an economy that's taking its time to fully rebound.