Significant, continuing growth was seen in the global Internet and E-Commerce sector in 2007. Barring a deep global recession, reasonable growth will continue into 2008 and 2009, particularly in growing worldwide use of the Internet, access to the Internet via wireless devices and consumer purchases via websites. Online advertising expenditures in the U.S. totaled $25.5 billion during 2007, according to analysts at IDC, up 27% over 2006. Major advertisers are expanding their online advertising budgets rapidly. Online advertising in 2008 will account for about 10% of all ad expenditures in the U.S. Retailing online continues to be a booming business. Total online sales reached approximately $131 billion in the U.S. during 2007 (not including sales of travel), according to eMarketer. Travel sales online for 2007 were about $91.3 billion. Successful online marketers continue to post excellent growth. According to Plunkett Research, Ltd.’s latest report, the most significant evolutionary trends are:

1) VOIP Use Soars and Threatens to Revolutionize Telecom.

For the first time in history, local exchange telephone companies face a dismal market for local phone lines. In particular, the rapid proliferation of high-speed access to the Internet in homes and offices makes Internet-based telephony (VOIP) a logical next step for a wide variety of businesses and consumers.

2) U.S. E-Commerce Companies Expand Overseas, China to Become the World’s Largest Online Market

Many U.S. retailers are enhancing their online offerings in order to attract more foreign customers due to the significant drop in the value of the U.S. dollar relative to other major currencies. China appears to be the market with the greatest potential for e-commerce growth. Internet use in China is booming, with more than 210 million users already online as of December 2007, according to Internet World Stats.

3) Bricks, Clicks and Catalogs Create Synergies While Online Sales Boom.

Retail sales made from U.S. Internet sites accounted for approximately $131 billion in 2007, according to analysts at eMarketer. Growth in non-travel online spending is expected to continue at an annual rate of 17% to 20% over the mid term.

To find out more about these exciting trends and more, check out Plunkett’s E-Commerce & Internet Business Almanac 2008, just released, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett’s completely up-to-date online database!

About Plunkett Research, Ltd.
Plunkett Research, Ltd. is a leading publisher of complete business research and analysis resources, designed to enable professionals in marketing, research and finance to access complete trends analysis, statistics, technology analysis and financial analysis of the world’s most exciting industries. For more information, visit www.plunkettresearch.com, or call 713.932.0000.