Piper Jaffray Predicts Global Online Advertising Revenue to Reach $81.1 Billion by 2011

Report from February '07: 'The User Revolution'

12 Main Points

  1. Global online advertising revenue to reach $81.1 billion by 2011.

  2. Communitainment = Community + communication + entertainment
    This new type of activity is taking time away from traditional types of content consumption.

  3. Usites -- The increasing popular category of user generated sites take traffic away from other content destinations, a challenge to advertisers and publishers.

  4. The Internet is a mainstream medium: It is the leading medium at work and only second to television at home.

  5. Usage patterns changing: favoring Usites, communitainment sites, and search. Away from traditional portals.
User Generated Brands. The consumers are taking control of content consumption and branding.

Media Fragmentation: Advertisers increasingly will need to buy more inventory, from nearly all types of media, especially the Internet, to have the desired impact.

8. The Golden Search: search has become the new portal.

9. Google's dominance is likely to expand, partly fueled by a wide
variety of non-search related products that create a virtuous cycle
of brand affinity for Google.

10. Video ads will be the driver of the next major growth in brand
advertising and getting additional dollars shifted from traditional
media to online.

11. Ad networks are experiencing increased demand due to increasing
Internet fragmentation, desire for more targeted inventory,
increasing usage of networks for branding and increased site

12. Agencies are rapidly evolving into more sophisticated,
technology-savvy entities that combine best of breed offerings.

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