Internet advertising is expected to account for 10% or $23.5bn (£14bn) of the overall $235bn US advertising market by 2010 according to US researcher Park Associates.
Park said that last year internet advertising accounted for 5% of the then total $189bn advertising spend. Park’s overall figures include newspapers, magazines, cable and network TV.
Park said that internet advertising will be regarded as a “mainstream” advertising medium by 2010.
While Park said traditional forms of advertising will always be needed to deliver an important advertising mix, it pointed out that a number of large companies, including Proctor & Gamble and Anheuser-Busch, were already moving advertising cash from network TV to the web.
The web’s growing role in advertising is the major reason why Microsoft’s MSN, Yahoo, AOL and Google are ploughing resources into delivering improved on-line desktop services to their users, to encourage them to keep visiting their portals and viewing the ads placed there.