Growing Internet Ad Dollars

WSJ writes that “a new report from Jupitermedia’s JupiterResearch predicts that dollars spent on online advertising — defined as a paid message featured on a Web site, online service or other interactive medium, such as instant message or e-mail — will match dollars spent on magazines by 2007, then surpass them in 2008.”

Web offerings have become “more targeted and much smarter” about how they measure their audience, says Gary Stein, a Jupiter senior analyst. Driving the money, he says, is the burgeoning popularity of paid-search advertising, which allows marketers to link their names to very individual Web activity. Also important: The spread of high-speed broadband connections will spur more use of ads that are more like TV commercials, creatively using video and sound. Meanwhile, Internet display ads have shown new momentum this year. The report calls for usage minutes and ad dollars to cluster around four top properties: Yahoo, Google, Time Warner’s AOL and Microsoft’s MSN.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.