Kelsey: u.s. interactive ad revenues to hit $62.4 billion by 2012

Interactive advertising in the U.S. Will grow from $22.5 one million million in gross in 2007 to $62.4 one million million by 2012, according to "The Kelsey Group's Annual Forecast (2007-2012): mentality for Directional and Interactive Advertising," released today.

Kelsey analysts expect the U.S. Marketplace to see 22.6 percentage compound annual growth rate for interactive advertising, including search, local hunt, display ad, online classifieds and other interactive ad merchandise.

The study also predicts global interactive ad gross will reach $147 one million million U.S. By 2012, up from $45 one million million U.S. In 2007, rise at a chemical compound annual growing rate of 23.4 percentage. Interactive ad grew in the global market from 6.1 percentage in 2006 to 7.4 percentage in 2007. Kelsey analysts predict interactive's share of global ad disbursement will grow by 23 percentage and yet reach 21 percentage of the total ad spend by 2012. The study states that the overall worldwide ad market grew to over $600 one million million U.S. In 2007, and is expected to continue growing to $707 one million million in five years.

Matt Booth, SVP interactive local media for Kelsey, also predicted a boom in the figure of companies that will try to take vantage of the addition of interactive marketing's percent of the global advertising budget.

"Growing from 7.1 percentage to 21 percentage is a lot. We're expression that there will be a big shift to digital advertising marketplace," he said. "The global shift to digital products will be the most interesting and we'll see what kind of global company start-ups will go after that acceleration of dollars moving to digital products."

The growing of online advertising will come at the disbursal of print and paper advertising, which has been an ongoing trend, according to Booth.

"Globally the print paper business will diminution... 5.8 percent per year across the board. Most of the growing in digital is going to come from print diminution," said Booth. "[peculiarly] Yellow Pages print declines, which are smaller, and newspapers which make the largest share drop in our forecast."