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Forrester reports advertising shift to online

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Cambridge, Mass.—Nearly half of marketers surveyed said they plan to decrease spending in traditional advertising channels this year to fund an increase in online ad spending, according to a report by Forrester Research.

Total U.S. online marketing spending will reach $14.7 billion this year, up 23% over 2004, according to the report.

By 2010, online advertising and marketing will make up 8% of total ad spending, Forrester projected.

Search engine marketing is projected to grow by 33% this year and to reach $11.6 billion by 2010. Display advertising, which includes traditional banners and online sponsorships, will grow at an average annual rate of 11% over the next five years, reaching $8 billion by 2010.

The report was based on online surveys of 99 leading marketers, as well as data from previous Forrester studies.

—Kate Maddox

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