The Web will account for almost 6 percent of all global advertising revenue by 2005, according to a report released today by Jupiter Communications, an Internet research firm based in New York.
North America accounts for nearly 75 percent of ad revenues globally, totaling $5.4 billion this year. Europe is the second largest market with $900 million, followed by Asia with $500 million.
Jupiter predicts that Latin America will have the strongest growth rate, increasing 68 percent from 1999 to 2005.
However, the research warns, creating a global brand via the Internet is not easy.
"The challenges are commensurate with the opportunities," said Evan Neufeld, Jupiter's vice president of international research. Companies will have to adapt to increasingly fragmented material both online and offline, he said.
The growth in advertising sales is affected by the rise in Internet users worldwide. By 2005, nearly 800 million people across the globe are expected to log on to the Web, more than double the 300 million users online today, the report said.
The findings were based on research from public financial filings and extensive interviews with online ad sellers.
Global online advertising
Current and projected online advertising revenues. Figures in millions of US dollars.
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|Source: Jupiter Communications|