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US online ad market to approach $35 billion by 2014

June 17, 2010
As digital advertising formats continue to overtake printed media, a new forecast from analysts PricewaterhouseCoopers (PwC) is predicting online advertising revenue to increase by more than $10 billion (£6.7b) to become the second biggest advertising medium in the US by 2014.

The United States is home to the world's most mature online ad market, however the analyst predicts that TV ads will still exceed online advertising in 2014 - a benchmark already passed in the UK.

In its Global Entertainment and Media Outlook: 2010-2014 report, PwC forecasts the US online advertising market to reach $34.4 billion (£23.2b) by 2014, up from $24.2 billion (£16.3b) in 2009. This figure does not include mobile advertising, which is classed as a separate market - one also poised for rapid growth over the next four years, quadrupling from $414 million (£279m) at present to $1.6 billion (£1.1b).

The rise of digital media corresponds to a move away from print advertising, which PwC estimates will fall to $22.3 billion (£15.1b) in the US by 2014, compared to $24.82 billion reported by the Newspaper Association of America earlier in 2010.

Part of the underlying reason for the gaining momentum of digital media is the way it has weathered the recession. According to the report: "Although the Internet did not fully escape the impact of the recession, its decline in the United States was much less severe than that of other advertising media."

Last November, the European Interactive Advertising Association (EIAA) predicted online ad spend to rise across Europe, initially by 7.6 per cent in 2010 before accelerating in 2011. The association also forecast an increase in advertising budgets of 15 per cent as companies embrace the rapidly growing areas of social media and video advertising in their campaigns.


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