Interactive ad revenues to reach 147 billion by 2012

The global ad market grew to just over 600 billion in 2007, according to The Kelsey Group. The firm expects global ad revenues to grow at a compound annual growth rate (CAGR) of 2.7% and reach 707 billion in 2012, propelled in large part by considerable growth in the interactive segment.

According to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising," interactive ad revenues will increase yearly from 45 billion in 2007 to 147 billion globally in 2012, representing a 23.4% CAGR.

Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1% in 2006 to 7.4% in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21%.

During the forecast period (2007-2012), the US will see interactive advertising revenues grow from 22.5 billion to 62.4 billion (22.6% CAGR).