Even as Internet advertising spending growth slows, US online ad spending will continue to increase

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(Continued) The RFS Newsletter, Sep. 30, 2006. Page 8
"Any Internet marketer can have a rough time with a particular segment, but that doesn't mean everyone else is," Ramsey said. "Yahoo does control about 18 percent of total online ad spend, so if they have a stumble, it's going to effect our numbers at some juncture." Although growth is slowing down a bit, the overall increase that remains is likely to be sustainable growth, Ramsey said. For next year, eMarketer expects even more modest growth of less than 15.2 percent, followed by a 17+ percent growth in two years from now.

Even as Internet advertising spending growth slows, US online ad spending will continue to increase, from $15.9 billion in 2006 to more than $21 billion in 2008, well surpassing $25 billion by the end of this decade. That growth puts Internet ad spending on course to overtake radio for the first time in 2008 as a percentage of total ad spend. For 2006, more than 5.6 percent of all ad dollars are going online, and for 2007 that figure is expected to rise to more than 6.3 percent, reaching almost 9 percent in four years from now.

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