US Online Advertising to Double by 2005, Predicts IAB

14 August 2003

America’s Interactive Advertising Bureau is in bull mode, talking-up growth for the medium over the next 36 months.

By 2005, believes the ISB, interactive advertising will have doubled to $8.6 billion (€7.63bn; £5.36bn). Together with research specialist GartnerG2, the IAB interviewed fifty-three US media agencies on their attitudes to web advertising.

Media buyers, it seems, perceive the main benefit of interactive to be propelling traffic and sales, as opposed to brand awareness and product positioning. The latter qualities they continue to associate with traditional media – a perception, says Gartner, that must be overturned if the interactive medium is to enjoy substantial growth.

“Until interactive advertising can demonstrate an ability to deliver on brand awareness and product positioning campaigns, dollars will not begin to shift from traditional to interactive, and growth will be incremental,” opines Gartner’s media and advertising analyst, Denise Garcia.

According to the survey, larger agencies are the principal recommenders of interactive ad techniques, some 67% doing so. Smaller agencies are less inclined to take the cyber-bull by the horns.

Data sourced from: BrandRepublic (UK); additional content by WARC staff