Online advertising will proliferate across the Asia-Pacific region (excluding Japan) over the next four years, growing to a value of more than $US1 billion by 2004, according to a report released last week by analyst IDC.
Advertising on the Internet will grow at a compound annual rate of 76 per cent between 1999 and 2004, bringing total online advertising revenue up from just $67 million in 1999 to $1.15 billion in 2004.
The online segment only accounted for 0.05 per cent of all advertising revenue in the region in 1999 but will grow to 2.5 per cent by 2004. Advertising techniques will branch out from the traditional banner ad to more sophisticated techniques, such as site sponsorships, said IDC's Matthew McGarvey, who authored the report.
The advent of Internet content tailored to local languages and markets is fuelling the growth of online advertising in the region, and a broadening of the market is also driving up ad revenue, McGarvey said.
"It's coming from traditional companies now moving their advertising online. As it is now, the only people advertising are banks, technology companies and other dot-coms," he said.