Mixed guidance for US online advertising

09/26/06 - newratings.com

NEW YORK, September 26 (newratings.com) –Research firm eMarketer Monday announced that US Internet advertising revenues have been rising at record levels, while warning against a slowdown in growth this year.

eMarketer estimates a 26.8% rise in online advertisement spending this year to $15.9 billion, as compared to the market rates of 30% and above in the previous two years. Geoff Ramsey, Chief Executive of eMarketer, said, "It's really hard to sustain a 30 percent growth rate for three years in a row…the Internet will still be growing at a faster rate than television and most other media, but it's going to be coming back down to sustainable level," according to Reuters. The research firm said that online advertising revenues will continue to grow and will generate $25.2 billion by 2010, although the growth rates will slow to more sustainable levels.