Internet Spending Expected to Reach $78.4 Billion by 2011
A new study projects that internet advertising and access spending in the United States will total $78.4 billion in 2011, up from $47.2 billion in 2006, an average annual growth rate of 10.7 percent. According to the report “Global Entertainment and Media Outlook: 2007-2011”, recently released by PricewaterhouseCoopers, this 10.7 percent growth rate is fueled by high-speed internet connections and social networking and entertainment sites.
The United States currently has the world’s largest online ad market, projected to reach $35.4 billion by 2011. Declining television viewing by key audiences has helped boost internet advertising, and consumer access fees are expected to grow at a 7.1 percent average annual rate.
Meanwhile, IDC estimates that the number of broadband subscribers in the United States will expand from 56.3 million at the end of 2006 to 91.5 million by 2011. According to their market analysis report, “U. S. Broadband Services 2007-2011 Forecast”, several factors are contributing to the growing number of broadband subscribers, including internet users’ desire for a faster connection, price cuts, market consolidation, value-added services, and “triple play packages” combining internet, phone, and television.
As the demand for broadband remains strong, along with an ever increasing number of internet users, internet advertising and access spending in the United States will continue to grow.
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