TNS estimated total Internet ad spending would reach $20 billion by year-end, or about 12 percent of a $161 billion 2006 measured media ad pie when search is factored in

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(Continued) The RFS Newsletter, Jun. 17, 2006. Page 12
That estimate is almost 4 percent higher than from its January forecast of 9.1 percent, marking the greatest upward revision of any medium over the latest 6-month period. Steven Fredericks, CEO of TNS said the company's first estimates were too conservative for Internet ad spending. He also said much of the revision comes from an acceleration in the migration of traditional media ad budgets to online ads. Although it does not officially calculate other forms of online ad spending, including search, Fredericks said that TNS MI estimated total Internet ad spending would reach $20 billion by year-end, or about 12 percent of a $161 billion 2006 measured media ad pie when search is factored in.

"Last year we just passed the 10 percent range," noted Fredericks, adding: "obviously, the ad expenditure pie is growing and each year is kind of a new record in a sense, but we're also seeing shifts from other media into the Internet."

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