U.S. online ad spending to reach $58 billion in 2017, says report

Spending for online ads delivered via fixed broadband service in the United States will reach $58 billion in five years, or 40 percent of the $143 billion projected to be spent worldwide on online ads, according to a new report from Digital TV Research.

The report, “Online Advertising Forecasts,” released Nov. 14, 2012, also projects the U.K. will see fixed broadband online ad spending grow to $11.7 billion in 2017, and China will see an increase to $10.8 billion in 2017. In 2014, China will overtake Japan as third in overall online ad spending.

In the United States, the 2017 projection is more than twice the $26 billion spent on online ads in 2010. U.S. online advertising spending will continue to top the list of spending in all territories throughout the period measured.

The 2017 forecast for worldwide online ad spending is more than double the $66 billion posted in 2012 and significantly higher than the $92 billion projected for 2012. Driving this growth is the increasing adoption of broadband service by households around the world, the report says.

By 2017, 745 million homes in 40 countries will subscribe to fixed broadband, up from 473 million in 2010, it says. The 2017 total represents 49.2 percent of total households, up from 33.5 percent at the end of 2010.

Online advertising per fixed-broadband household will increase from $139 in 2010, to $165 in 2012 and $197 by 2017, the report said. Digital TV Research did not include mobile advertising in the projections.