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Media and entertainment companies to dominate online advertising
While online advertising has taken off around the world, it is media and entertainment, financial services, travel and automotive companies that will dominate spending on online advertising in the US market in coming years, a new study has found.
Jupiter Research predicted that these sectors will spend around $11.5 billion (£6 billion) advertising online in 2011, accounting for 57 per cent of all online spending that year.
online advertising across all sectors is set to increase in the next five years, with the largest online advertiser category - media and entertainment - set to contribute the most money to search engine advertising through services such as Google AdWords and Yahoo search marketing.
Financial services is set to be the second largest online advertiser category, the report states, with media and entertainment and financial services advertisers benefiting from business models that work well online.
"Audience fragmentation and e-commerce patterns will continue to drive brand and direct response advertisers to shift off-line budgets online," said president of JupiterKagan David Schatsky.
"With consumers spending as much time going online as watching television - a median of 14 hours per week- the shifting of budgets to online advertising is inevitable."
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