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(Continued)     The RFS Newsletter, Jan. 14, 2006. Page 3
In news on Tuesday, according to TNS Media Intelligence, online advertising spending is expected to increase 32 percent over 2006 to $16.6 billion. In a recent market study, TNS said companies were asked in November how they were planning to divide their ad dollars in 2006. The growth in projected spending is partly a result of online being viewed as a preferable ad channel because it is accountable. "The largest number of survey participants believes that Internet advertising methods have the highest perceived return on investment, significantly ahead of any other category," the report said.

It is also the result of top advertisers following behind the behavior of their customers. While major brands plan to increase their online spending, the entire ad market is still spending only 5 percent of budgets in online advertising. Credit Suisse projected that the overall percentage will increase to 6.5 percent in 2006.

In other news on Tuesday, Google is preparing to offer free video downloads, video rentals and premium-partnered video content via its soon-to-be-launched Video Store. Major announcements of partnered footage to be available from Google Video Store include media empires such as CBS and the NBA.

<<< Pr. page     Next: Google entering the video rental business! >>>

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