Interactive ad revenues to reach 147 billion by 2012

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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).