Thursday, August 9, 2007

Internet Ad Spending in the US to Exceed Traditional Media by 2011

According to a post covered in the Financial Times, private equity and investment firm Veronis Suhler Stevenson (VSS) has came out with a new ad spending forecast. The Internet in the US is forecasted to become the top advertising medium by 2011 capturing $61.98 billion.

The traditional advertising media like television and press will slow down in growth while alternative media will grow at an annual rate of 17.4 percent during the forecast period.

According to the VSS report, consumers are spending less time with media overall. The report says the increase in advertising spending will be fueled by the migration of the consumer to digital media which require less time.

According to the VSS estimates, paid search will reach about $8.7 billion by year end and $16.7 billion by 2011.