JupiterResearch Forecasts Online Advertising Market to Reach $18.9 Billion by 2010; Search Advertising Revenue to Surpass Display

NEW YORK--(BUSINESS WIRE)--Aug. 8, 2005--JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), released its 2005 Online Advertising Forecast today at the Search Engine Strategies Conference & Expo 2005. The forecast reveals that online advertising will continue steady growth over the next five years, eventually reaching $18.9 billion in 2010, compared to $9.3 billion at the end of 2004. This growth reflects not only advertiser confidence in the medium, but also the strength of advertising on search engines in 2010. Search engine advertising will generate more revenue than standard display advertising by 2010.

Compound annual growth rates tell the story: display will grow at 7% and search will grow at over 12% over the next five years. "There is phenomenal momentum behind search engine advertising," stated JupiterResearch Senior Analyst Gary Stein. "The number of advertisers using search to market products continues to grow, as does the overall efficiency of the market-- search engines are getting even better at making money off search engine results pages," added Stein.

“Publishers are in a good position right now”

The rise of search engine marketing, however, is only one element of an overall growing online advertising market. Other areas will also experience sustained growth over the next several years. Classified advertising will grow at nearly 10%, reaching $4.1 billion in 2010. Advertisers will also take great advantage of the growing number of broadband-connected households to field rich and streaming media advertisements. Rich media spending will grow at a 25% compound annual growth rate (to $3.5 billion) and streaming media will grow at a 30% compound annual growth rate (to $943 million) by 2010.

Publishers will see revenue grow from several sources, including direct sales and network revenue-share deals. This year, the revenue of ads priced on a performance basis will surpass that of ads sold on an impression basis. Much of this performance inventory will come from network providers, which are increasing their use of targeting technology to provide better results for publishers. "Publishers are in a good position right now," noted JupiterResearch VP and Research Director David Card. "Not only can they monetize their non-premium inventory, but they can strategically choose the network providers they feel can generate the most yield from that inventory," added Card.

The complete findings of this forecast are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For more information on the forecast or JupiterResearch's Online Advertising research service, please contact Kieran Kelly, Vice President of Global Sales and Client Service at 1-800-481-1212 or [e-mail].

About Jupitermedia Corporation

Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com) headquartered in Darien, CT, is a leading global provider of original information, images, research and events for information technology, business and creative professionals. Jupitermedia includes JupiterImages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like Brand X, FoodPix, Botanica, Nonstock, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Goodshoot Images, Photos.com, HemeraImages.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, the online media division of Jupitermedia which operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. JupiterWeb properties include more than 160 Web sites and over 150 e-mail newsletters that are viewed by over 20 million users and generate over 290 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets.

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