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Online Content Spend to Grow 10.4 Percent
By 2005, one-fifth of US Internet users will be content buyers. The growth rate is one-quarter of that seen in 2002 (43.4%). This year marks the first time since eMarketer began tracking such revenues that online advertising spending, with 14.8% year-over-year growth, is outpacing online content spending.
Nonetheless, eMarketer forecasts the percentage of online content buyers in the US will continue to rise steadily through 2005, reaching 35.8 million that year.
"eMarketer has identified three catalysts for the emergence of the online paid content market in the US," says eMarketer Senior Analyst Ben Macklin. "The dot-com bubble bursting reduced the number of free alternatives available. This was accompanied by online advertising revenues drying up in 2001 and 2002, forcing sites to look for other revenue streams. Lastly, despite the economic downturn, Internet users grew in both numbers and experience, and a critical mass of Internet users became comfortable transacting online."
The report also points to the growth in broadband adoption in the US -- the always-on connection, in combination with extra bandwidth, opens up greater possibilities for live and multimedia content
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Nonetheless, eMarketer forecasts the percentage of online content buyers in the US will continue to rise steadily through 2005, reaching 35.8 million that year.
"eMarketer has identified three catalysts for the emergence of the online paid content market in the US," says eMarketer Senior Analyst Ben Macklin. "The dot-com bubble bursting reduced the number of free alternatives available. This was accompanied by online advertising revenues drying up in 2001 and 2002, forcing sites to look for other revenue streams. Lastly, despite the economic downturn, Internet users grew in both numbers and experience, and a critical mass of Internet users became comfortable transacting online."
The report also points to the growth in broadband adoption in the US -- the always-on connection, in combination with extra bandwidth, opens up greater possibilities for live and multimedia content
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