Well, the title is a bit misleading, the money is already coming to the online space, but I’m seeing more and more reports that advertising dollars both on newspapers and TV will shift to the web. Read the Financial Times’ article on Online ads to overtake US newspapers.
Why is this important? The web is a platform for TV, the newspapers are going digital, and it’s the underlying infrastructure for mobile devices.
[Near vertical adoption curve: In just 15 years the web becomes the most dominant medium on the planet]
Check out this report from MediaPost that indicates that Internet Ad Spending Set To Overtake All Other Media By 2011: VSS
“Spending on internet advertising willl reach $61.98 billion, and will surpass newspapers to become the nation’s leading ad medium in 2011, projects private equity firm Veronis Suhler Stevenson in its 21st Communications Industry Forecast released today.”
Shift of the advertising dollars:
“Growth of 25.79% is projected for ad spending on traditional media-based Internet sites, which hit $8.585 billion in 2006, and is projected to reach $27.2 billion in 2011.”
How does this impact Social Media?
“Blog, podcast and RSS advertising is projected to reach $1.138 billion by 2011, registering the fastest growth rate at a 70.9% CAGR forecast from 2006-2011.”
What’s the medium to watch? Well at PodTech, we’re very focused on Video, as we know that 75% of all internet users streamed video in May 2007.