Summary of the latest trends and statistics and trends for internet marketing and online advertising for 2010.

1. TABLE OF CONTENTS
Executive Summary 2
Dale Tubig Internet Usage 3
Digital Marketing Advertising Spend 4
Strategist & Consultant Advertising by Medium 5
www.WSIStrategicEdge.com
Internet Advertising 6
info@WSIStrategicEdge.com
858.207.4993 Display Advertising 7
Online Video 8
Online Classifieds 9
Paid Search 10
Email Marketing 11
Social Media 12
Source of all statistics:
About WSI 14

2. UNITED STATES Executive Summary
2010 – A Year of Economic Recovery
It is safe to say that 2009 was a year of economic crisis for
markets all over the world. As the "R" word resonated in
the minds of business owners everywhere, they began
tightening their budgets to adapt to the economic
challenges.
Participation in the recession is a choice, and companies
must challenge themselves to evaluate their businesses and
understand how they can change in order to surpass the
economic conditions.
Though 2009 was a year of hardship, many believe that
2010 will be a year of economic recovery. Over the past
year, Internet advertising spending in the US increased
drastically, as spending through traditional advertising
venues, such as newspaper, radio and television shrank.
This trend is projected to continue in 2010.
The #1 fastest growing advertising channel is the Internet,
and businesses need to re-invent their marketing strategies
and capitalize on this medium in order to rise above the
economic challenges.
This Internet Marketing Trends Report is a brief synopsis of
the current online marketing activities in the US, as well as
the projected trends for the coming years. Specifically, the
report covers Internet usage and penetration, total
advertising spending, Internet marketing spending and
social media trends.
For more information about WSI’s Internet marketing services,
please contact your local WSI Consultant.
Copyright ©2010 by Research and Management Page 2
WSI Internet Marketing Trends Report 2010

3. UNITED STATES Internet Usage
Internet Users Growing
 In 2010, the US Internet
population will grow to 205.3
million users, or 66.2% of the total
US population
 This number is forecasted to
increase in 2011 to 210.9 million
(67.3% of the total population)
 By 2013, 221.1 million people will
be online (nearly 70% of the US
population)
 Current trends indicate that the
Internet is now a mainstream
communication medium
Online Activities of US
Internet Users
 According to eMarketer, the most
popular online activity among US
Internet users is search (94%)
 Email is the second most popular
online activity at 92%
 77% of respondents said they
participate in social networks while
71% said they use the net for
instant messaging
 Almost 60% of respondents use
the Internet to read and participate
in online wikis
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WSI Internet Marketing Trends Report 2010

4. UNITED STATES Advertising Spend
Total Media Advertising
Spending Growth
 Next year, total media advertising
spending is expected to grow slightly
by 0.3%
 Total advertising spending growth
will rise again in 2012 to 2.4%
 In 2014, total advertising spending
will grow by 2.7%
Total Advertising
Spending in the US
 Though total advertising spending
will decline slightly in 2010 ($163.0
billion compared to $163.8 billion
spent in 2009), it will gradually
increase each year going forward
 Total advertising spending will
reach $167.5 billion in 2012 and
increase another billion in 2013
 By 2014, $173 billion will be
spent on total media advertising
Share of Adspend by
Medium
 Prior to the recession, Internet
advertising consumed 10.5% of
total adspend in 2008, surpassing
only outdoor and cinema ads
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WSI Internet Marketing Trends Report 2010

5. UNITED STATES Advertising by Medium
Internet Advertising Sees
the Most Growth
 During the recession, traditional
advertising channels saw a
decrease in spending growth in
2009, as marketers moved their
budgets to more measurable
channels like Internet advertising,
which saw an increase of 14.1%
 In 2010, most channels will
continue to see a decrease in
growth, while Internet marketing
will continue to remain the channel
of choice and increase by 15.2%
 Next year, outdoor and TV
advertising growth will rise again,
but the Internet will still see the
most growth with 15.1%
Advertising Expenditure in
the US by Media
 In 2009, US marketers spent
$20.34 billion advertising online
 This year, marketers will spend
$23.42 billion advertising online, and
by 2011, this number is projected to
reach almost $27 billion
 Though TV ads still consume the
largest piece of the advertising pie,
Internet adspend in the US has
surpassed print advertising,
including channels like radio,
magazine and outdoor advertising
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WSI Internet Marketing Trends Report 2010

6. UNITED STATES Internet Advertising
Online Advertising
Growth Remains Steady
 Internet advertising spending
grew by 22.8% in 2008, but
declined in 2009 due to the
recession (14.1% growth)
 In 2010, online advertising
spending growth will increase
slightly (15.2%) and will remain
steady for the next few years
 Internet advertising spending will
grow by 15.1% and 15.2% in 2011
and 2012 respectively
Internet Advertising
Expenditure Keeps Rising
 When reviewing the dollars being
allocated toward Internet
advertising, the results indicate a
steady increase in spending
 In 2009, $20.34 billion was spent
advertising online in the US, and
this year, that number is projected
to increase to $23.42 billion
 ZenithOptimedia estimates that
by 2012, marketers will spend
$31.05 billion in advertising dollars
online
Copyright ©2010 by Research and Management Page 6
WSI Internet Marketing Trends Report 2010

7. UNITED STATES Display Advertising
Display Advertising
Growth Will Rise in 2010
 In 2008, display advertising
spending grew by 15%, but
decreased to a mere 3% growth in
2009, as advertisers became more
reserved even in the online
spending
 Despite a decrease from 2008-
2009, display advertising will
bounce back this year and grow by
7% and then remain steady at 10%
growth in 2011 and 2012
Advertising Expenditure
for Online Display Ads
 In 2009, $4.21 billion was spent
on display advertising in the US
 According to ZenithOptimedia, US
marketers will spend about $4.51
billion on display ads in 2010
 Almost $5 billion is expected to
be allocated toward display
advertising in 2011
 By 2012, US advertisers will
spend almost $5.45 billion
advertising through display ads
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WSI Internet Marketing Trends Report 2010

8. UNITED STATES Online Video
Year Over Year Change in
Online Video Advertising
 With the increased popularity of
video websites like YouTube, we
saw a huge spike in online video
advertising in 2008
 Though spending growth declined
to 19% in 2009, we can expect to
see a slight recovery in 2010 to
22% growth as we begin to
recuperate from the recession
 In 2011, online video advertising
spending will grow by 20% and
remain steady through to 2012
US Marketers Continue to
Spend More on Online
Video Advertising
 As viewing online videos becomes
more of a mainstream activity, US
advertisers will continue allocating
more marketing dollars toward this
channel
 In 2010, about $2.69 billion will be
spent advertising with online videos,
an increase from the $2.21 billion
that was spent in 2009
 By 2012, marketers will spend
$3.84 billion producing online videos
for advertising purposes
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WSI Internet Marketing Trends Report 2010

9. UNITED STATES Online Classifieds
Online Classified
Advertising Growth
Remains Steady
 In 2009, classified advertising
spending only grew by 3%, a
considerable decline in comparison
to previous years
 However, much like other
Internet marketing channels, online
classified advertising spending will
grow in 2010 (7%)
 In 2011, spending growth will
reach 9% and remain steady at this
rate in 2012
Advertising Expenditure
for Online Classified Ads
 In 2009, online classified
advertising spending reached $3.22
billion in the US
 This year, US marketers will spend
about $3.45 billion on online
classified ads
 ZenithOptimedia predicts that by
2012, $4.1 billion will be spent
advertising through online
classifieds in the US
Copyright ©2010 by Research and Management Page 9
WSI Internet Marketing Trends Report 2010

10. UNITED STATES Paid Search
Paid Search Advertising
Growth in the US
 Paid search advertising saw only a
slight decrease in growth in 2009
(20%) compared to 2008 (22%)
 This year, paid search advertising
growth in the US will reach 18%
 Though spending growth will
decline slightly in 2011, it will
remain steady in 2012 at 16%
 Paid search will remain one of the
main online advertising channels
marketers allocate budget towards
Advertising Expenditure
for Paid Search Marketing
 According to ZenithOptimedia,
$11.20 billion will be spent on paid
search advertising in 2010
 US paid search advertising
spending will increase again in
2011 to reach almost $13 billion
 Experts predict that by 2012, US
marketers will spend about $15.07
billion advertising through paid
search
Copyright ©2010 by Research and Management Page 10
WSI Internet Marketing Trends Report 2010

11. UNITED STATES Email Marketing
Email Advertising
Spending Climbs Steadily
 Though email marketing spending
dropped in 2009 from 2008, it will
climb steadily from 2010-2014
 In 2010, $283 million will be
spent on email marketing in the US
 Email marketing spending will
reach $302 million in 2011 and
$323 million in 2012
 eMarketer predicts that by 2014,
$374 million will be spent on email
marketing
Email Marketing and
Social Media Integration
 27% of respondents in an
eMarketer study said they have
integrated social media into their
email marketing campaigns in 2010
 24% said they have formulated a
strategy and are researching tools
for implementation
 Interestingly, 18% of respondents
said they plan to integrate social
media and email marketing, but do
not know where to start
Copyright ©2010 by Research and Management Page 11
WSI Internet Marketing Trends Report 2010

12. UNITED STATES Social Media
More Internet Users are
Using Social Networks
 According to eMarketer, there
were 70.6 million adult online
social network users in 2009
(43.5% of total adult Internet users)
 This year, 46.5% of the adult
online population will also be social
network users (77.8 million)
 In 2012, more than half of all
adult Internet users will also be
social network users (50.5%, 89.1
million)
Activities of Social
Network Users
 Interestingly, 52% of social
network users become a
fan/follower of a company or brand
on the social networks
 46% have said something positive
about a company/brand on the
social portals, while 23% have said
something negative
 18% of respondents have used
the social portals to promote
another company/brand, and 12%
have used social networks to
promote their own business
Copyright ©2010 by Research and Management Page 12
WSI Internet Marketing Trends Report 2010

13. UNITED STATES Social Media
Social Media Marketing
Growth Remains Resilient
 According to ZenithOptimedia,
the recession did not decrease
spending growth in social media
marketing in 2009
 In fact, social media marketing
spending growth increased last
year to 44.6% over 2008 (31.6%)
 This year, spending growth will
decline slightly to 30.6%, but will
remain steady at 30.2% and 30.0%
in 2011 and 2012 respectively
Social Media Marketing
Continues to Rise
 Trends indicate that US marketers
are spending more money to
advertise with social media
 In 2010, $728 million will be
spent advertising with social media,
up from $558 million in 2009
 Marketers are expected to spend
approximately $948 million on
social media marketing in 2011
 By 2012, about $1.23 billion will
be spent on social media marketing
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WSI Internet Marketing Trends Report 2010

14. ABOUT WSI
WSI leads the global Internet industry offering best of breed digital marketing solutions to
suit the needs of multiple industries. The company has the world’s largest Internet
Consultants’ network and a 100-person strong head office in Toronto, Canada. WSI Internet
Marketing Consultants have helped thousands of small and medium-sized businesses realize
their online marketing potential. By using innovative Internet technologies and advanced
digital marketing strategies, businesses can have a WSI Internet Marketing System tailored
to their individual needs to elevate their Internet presence and profitability to new levels.
The company has held the Number 1 spot in Entrepreneur Magazine’s Franchise 500 listing
under the Technology category for 10 years in a row under the technology category. With
the support and cooperation of its customers, franchise network, employees, suppliers and
charitable organizations, WSI aims to help make child poverty history through its global
outreach program (www.makechildpovertyhistory.org). For more information about WSI’s
offerings and business opportunities, please visit our website at www.wsicorporate.com.
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