According to a press release from IDC published on May 30, 2008, Internet advertising will not suffer from the current budget woes. While overall ad spending will decrease, Internet advertising will increase at a rate of about eight times that of the advertising industry at large, signaling a transfer of marketing and advertising power from other media outlets.

The Internet, the release says, will jump its current number five advertising position to number two in the next five years, putting it behind direct marketing. If this is to be believed, Internet advertising will surpass newspapers, cable television and even broadcast television as its overall annual revenue will double going from $25.5 billion in 2007 to $51.1 billion in 2012.

The study further projects that the major advertising form to watch is video advertising on the Internet, with a sevenfold projected growth from half a million in 2007 to $3.8 million in 2012.

“Search advertising will remain the one advertising format that will garner the most revenue over the forecast period in the United States. This means that for any media company, search must be a key part of its strategy. Any media company that is not Google cannot ignore this segment even if Google is towering above all others as segment leader with about 70% share of the segment’s revenue.”

The IDC Study entitled U.S. Internet Advertising 2008-2012 Forecast and Analysis: Defying Economic Crisis (IDC #212149), forecasts expenditures on Internet advertising in the United States for 2008–2012.

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