New York—Research firm eMarketer raised its U.S. Internet ad spending forecast to $16.40 billion for the year, up 30.8% over last year.
In a September forecast, eMarketer predicted Internet advertising would reach $15.90 billion for the year, up 26.8% over last year.
The new estimate reflects the increasing share that Internet advertising is taking from total media spending.
This year, U.S. marketers are expected to devote 5.8% of their total media budgets to Internet advertising, and by 2008, they will increase this share to 8.1%, eMarketer predicted.
EMarketer also projected that Internet ad spending will catch up to radio ad spending next year and surpass it by 2008.