US Advertising Faces Up to Internet Effect

16 August 2005

A new survey claims the internet and other new media are causing a fundamental shift in American advertising.

The report, by New York-headquartered private equity firm Veronis Suhler Stevenson, predicts new media advertising will grow by nearly 17% every year for the next five years, reaching $69 billion (€55.51bn; £38.02bn) by 2009.

Evp James Rutherford says there is now confidence that the internet offers solid opportunities as consumers go online and focus attention on cable and satellite TV and video gaming.

As far as advertisers are concerned, says Rutherford: "I don't sense the fear that was there before, although there is still confusion as to how best to take advantage of these changes."

According to the report, five years ago consumers spent 64% of their time with traditional broadcast TV, radio, newspapers and magazines. It predicts that in five years these will account for 54% of consumer time spent, with subscription and fee-based media accounting for 46%.

Data sourced from Financial Times Online; additional content by WARC staff