Stories by Rich Pearson

Online Growth Spurt Is Not Business as Usual

E-business is booming, and online marketing is back. US online retail sales are expected to reach US$65 billion this year and will continue to grow by a compound annual growth rate of 17% through 2008 to top US$117 billion, according to a report issued by Jupiter Research. Meanwhile, after taking a beating for much of 2001 and 2002, online advertising made an amazing comeback in 2003, fueled in part by the popularity of search, which accounted for almost 31% of all online activity in the first half of 2003, according to a joint report from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers. Piper Jaffray & Co. is predicting 20% compound growth for the next five years in online spending and calling for 21% growth in 2004, rising from US$6.7 billion to US$8.1 billion.