Internet Advertising Spending to Double its Share by 2010.

Parks Associates : Internet Advertising Spending to Double its Share by 2010. Spending on Internet advertising will account for 10% of total U.S. ad dollars in 2010, doubling from 5% in 2004 This increase represents a CAGR (compound annual growth rate) of 14% over the next five years.

Almost 21% of Internet users consider Internet advertising as the most relevant ad format for them, outscoring more traditional media formats such as newspapers, magazines, and radio. In the next few years, the Internet will become a mainstream ad platform and attract top dollars from advertisers.Because the Internet is an interactive and versatile platform and offers rich consumer usage data, advertisers can improve their ad targetability and achieve better results. Such benefits are extremely important to advertisers, who have been plagued by audience and media fragmentation and a lack of in-depth media consumption data from traditional ad formats. Many large companies with familiar brands, including Anheuser-Busch, Procter & Gamble, Verizon, and Wachovia, have been moving money out of network TV and to the Web, demonstrating advertisers’ growing confidence in Internet advertising. Traditional media companies are fully aware of this ongoing change in the advertising industry,” Wang said. “The Internet has altered the standard for the entire ad world, and traditional media have to respond by making their media platforms more interactive and results-oriented. The Changing Face of Advertising in the Digital Age Digital Entertainment: Changing Consumer Habits Publ 20051208