There are forecast in which internet advertising to grow 9.5% this year, followed by 12% to 13% annual growth over the next three years. In 2012, it is expected that the internet will attract 16.2% of all ad expenditure. The gap between the internet and newspapers has narrowed from 26% points five years ago to 11 this year, and perhaps it will be just four percentage points in 2012. Many expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half way through the next decade.

Paid search is the engine of internet growth: growth may reach 15% globally this year, and forecast consistent 14%/15% annual growth over our forecast period. Internet display, by contrast, is only growing by 6% this year, while classified is up just 2%.

Internet display ads and classifieds can accelerate in 2010 and 2011, but paid search is steadily increasing its market share to over 50% of internet ad expenditure in 2012.