January 04, 2008 | Friday

JP Morgan: Bright outlook for web revenues in 2008

By Jackie Danicki - Blogger in Marketing |News |Online Sales |PPC |SEO

"Nothing but net!” is what observers exclaim at American basketball games when a player sinks a shot so beautifully that the ball doesn’t even touch the rim. It always ends in an exclamation point.

The same could be said of an exhaustive new report published by the finance powerhouse JP Morgan which, as the title Nothing But Net suggests, predicts great things for internet stocks, e-commerce revenues, and online ad revenues in 2008.

There are no prizes for guessing that the continued dominance of search engine marketing figures largely in JP Morgan’s expectations. But how big does the company think search will be?

Analyst Imran Khan foresees a rise in search revenues from $22 billion globally last year to $50 billion in 2010 and expects global search revenues to rise 38 percent in 2008 to $30.5 billion (see chart of US stats here).

Additionally, the report notes that while e-commerce revenues have risen with uptake of broadband, advertising revenues actually outpace the adoption of broadband (see chart here).

When it comes to more traditional forms of online advertising, JP Morgan forecasts that average CPMs for graphical ads will bounce back from a $3.31 low in 2007.

You can download a PDF of the 312 page report here. The volume of data and research is somewhat overwhelming, but those of you who geek out on these numbers and predictions could have a bang-up weekend poring over it all. For the rest of us, the sunny outlook - on top of booming online holiday sales stats - is simply a very good way to head into the first weekend of 2008.