Study: Global Online Ad Revenue to Hit $143 Billion by 2017

3:02 AM PST 11/14/2012 by Stuart Kemp

The U.S. will remain the dominant market with a projected $92 billion in Internet ad spending.

LONDON -- Global online advertising spending will reach $143 billion in 2017, according to a report released Wednesday by Digital TV Research.

The research firm's report, titled "Online Advertising Forecasts," estimates that the 2017 total will more than double the $66 billion recorded in 2010. For 2012, the company predicts Internet ad expenditures to reach than $92 billion.

The U.S. will remain the dominant market for online advertising spending, according to the forecast. Its share of the revenue will stay at 40 percent of the global total, with its online ad spend projected to grow from $26 billion in 2010 to $58 billion in 2017. The U.K. will remain in the second spot with estimated online ad spending of $11.7 billion in 2017.

China will overtake Japan to take third place in 2014, according to Digital TV Research. China’s online ad revenue will grow from $2 billion in 2010 to $10.8 billion in 2017.

The global online advertising growth will be driven by a growing addressable market as more and more households convert to broadband usage, the researcher said. About 745 million homes in 40 countries will subscribe to fixed broadband by 2017, it predicts, up from 473 million in 2010. The 2017 total represents 49.2 percent of total households, up from 33.5 percent at end of 2010.

Report author Simon Murray expects online advertising per fixed broadband household to increase from $139 in 2010 to $165 in 2012 and $197 by 2017.

For the report, which covers 40 countries, online advertising is defined in net terms, which is rate-card prices less discounts, agency commissions and production costs. The figures do not include mobile advertising.

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