Online Ad Market Spending on Pace to Grow 20% in 2011

According to the latest industry forecast, the online advertising market looks to be on pace for a 20% growth spurt for 2011.

All told, online ad spending will balloon to an estimated $31.3 billion by the end of this year – an increase over $26 billion in 2010, when the market grew by a more modest 14.9%.

eMarketer, which made the prediction in a new report published Wednesday, similarly forecasts that display advertising is also on its way to surpassing search advertising as early as 2015

“The internet has become as fundamental as television to advertisers,” observes eMarketer principal analyst David Hallerman, who notes in the report that display’s rise in popularity can primarily be attributed to support from marketers who are increasingly funneling dollars toward banner and video ads.

Not surprisingly, the noted spike in display advertising comes in conjunction with a simultaneous rise in usage of digital advertising for branding purposes.

“As consumers continue to increase their time spent online and as the resurgent economy continues to bolster ad budgets, we’re going to continue to see an influx of dollars toward the internet,” Hallerman says. “More ad formats, such as video, and more channels, especially social media and mobile, are also key contributors to the spending gains.”

If estimates extending out to 2015 prove accurate, online advertising will comprise 28% of total US major media ad spending, compared to TV, “whose share of total spending is expected to hover around 38% for the next five years.”

To read the full report from eMarketer, click here.