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

The Hollywood Reporter

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

The Online Advertising Forecasts report estimates that the 2017 total will add up to 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 online advertising revenue will stay at 40 percent of the global total, although with its online ad spend set to grow from $26 billion in 2010 to $58 billion in 2017, the firm projects. 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 advertising revenue will grow from $2 billion in 2010 to $10.8 billion in 2017.

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

Report author Simon Murray predicts online advertising per fixed broadband household will 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, that is rate card prices less discounts, agency commissions and production costs. The figures do not include mobile advertising.