Online Advertising Set to Hit 20 Percent of Total 2007 Ad Spending

Last year there was a major discrepancy between the share of US marketing budgets going to online media and the share of consumer media consumption time that went to online media (around 20%).

It looks like marketers might be catching up to what their target audiences are doing. According to an advertising spending study just released by Outsell, online ad spend will reach 20 percent of the total U.S. ad spend in 2007. That leaves print at about 40% and TV and radio with the rest.

Pay-per-click (PPC) ads are expected to lose one percent of ad spend share while cost-per-action (CPA) ad spending will increase.