Spending on Internet advertising will pass $21 billion this year and double to $42 billion by 2011, as money is drawn away from print and television, according to research firm eMarketer. Paid searches will account for about 40% of spending. Reuters reports all ad spending will rise just 2.1% in 2007 while online advertising will rise 26.7%.
"Mainly because of the credit crunch and related economic fallout, Internet ad spending will not increase as much in 2007 and 2008 as previously expected," the report said. "However, reduced spending will be tempered by advertisers buying the low-cost display advertising gobbled up by mortgage companies' shrinking marketing budgets."