Automotive, Media, Banks To Drive Online Ad SpendingAutomotive, Media, Banks To Drive Online Ad Spending

Spending on online display and search advertising is expected to show strong growth over the next five years, driven by the media and entertainment, financial services and automotive industries, a market research firm said Thursday.

Between 2005 and 2010, revenues from display and search advertising is expected to increase at an average annual rate of 10 percent, JupiterResearch said.

Today, telecom, media and entertainment and financial industries make up nearly half of all spending on display and search ads, JupiterResearch said. Over the next five years, however, the automotive industry is expected to become a top buyer, spending at an average annual rate of 24 percent more on online advertising.

The travel industry is also slated for impressive growth, with a 13 percent average annual growth rate.

JupiterResearch also found in a recent report that health and consumer packaged goods companies are not big spenders online today, but that is expected to change as they look for different media to take their brands to consumers.

CPGs are expected to continue favoring display advertising, dedicating 83 percent of their online advertising budgets to it in 2010. By contrast, health brands are expected to increase spending in search substantially during the five-year period.