The Internet Advertising Bureau recently released figures for 2006. It showed that whilst ad spend on traditional media declined, online spending grew by over 40%.

Online now accounts for over £2b or 11.4% of total ad spending. This means it has overtaken print media and is second only to TV which had spending of £3.9b.

Looking at the figures and extrapolating the continued decline in TV and the increase of online (even at a reduced rate of 20%) it can only be a matter of 24 months or so before online will be number one.

The reasons in my view:

• Broadband usage is increasing both in coverage and speed.
• People, especially those under 35, are taking more content via the internet rather than traditional media.
• Active content generation and contribution is replacing passive consumption so readers are moving to internet based social media sources (blogs and podcasts) for stories and news (Whilst a low percentage will post stories as citizen journalists or even comments many more people actively read the comments and pass on stories and information to 3rd parties)
• Age barriers on using the internet is declining as software and PCs become easier to use and the IT educated generation grows older (PC adoption grew rapidly in the 1980’s. People who were then 25+ are now in their 50s and comfortable with technology)
• The internet provides a rich platform to consume information at a single point of delivery (people can watch video, listen to audio and read blogs and search engine delivered articles all at one location) 

Watch the video presentation of the report