Internet Ad Spending to Reach $5.1 Billion, Study Says

Aberdeen Group issued a new report projecting that Internet advertising spending will reach $5.1 billion by the year 2000.

But to sustain this kind of growth, advertisers need to be better educated about the trends and technologies driving the market in order to realize effective return on investment, the report says.

The report, entitled “Advertising on the Internet: Leveraging the Virtual Channel for Promotion and Brand Building,” says the Internet’s unique attributes and growing audience are creating unprecedented opportunities for advertisers. But, for many organizations, making the transition from traditional media channels to the Internet can be difficult and confusing.

“Advertising agencies still need to learn how to use the Internet to build brand recognition, distribute product information, convert prospects to customers, and obtain user profiling data for their major accounts,” Aberdeen explains.

The report explores the trends and technologies associated with Internet advertising and analyzes the market, its advantages and disadvantages, future growth, and core players.

Aberdeen Group, founded in 1988, is an information technology research and consulting organization that monitors user needs, technological innovation, and market developments. Check the Web site for more details on the report.