Global online adspend will grow only 12% this year, well below an original forecast of 47%, says research group Jupiter MMXI.

Western Europe is expected to witness particularly high growth, with online ad revenue set to rise 27% in 2001 to E1.2 billion, outstripping the 10% rise to E6.6bn in the larger North American market.

“We have to go back to 1997 to see such low growth, commented Jupiter advertising analyst Staffan Engdegard. “However, we see 2001 as a transition year.”

Growth rates are expected to pick up in 2002, said Engdegard, with a 27% global rise to E11.6bn, though this is 20% less than previous forecasts. In five years’ time, however, Jupiter expects the online ad industry to be worth E29bn, raising its share of total adspend from the current 2.1% to 5.2%.

“Many more people,” added Engdegard, “will be going online and advertisers will come to realise that, if used properly, it’s a medium that will offer great opportunities.”

News source: CampaignLive (UK)