New media advertising continues to grow

The internet, interactive TV and satellite radio will remain fast-growth areas in U.S. in terms of ad revenue, with the internet having averaged 57 percent growth each year over the past 10 years according to the ?Advertising Forecast 2006″ report from Kagan Research. In 2005, new channels with the most growth included satellite radio (235%) and interactive TV (116%). Total ad revenue in 2005, including traditional and interactive, increased 3.9%to $240 billion.

“The question is, can traditional ad media morph and take advantage of the internet and do partnerships with their own websites, or will dollars migrate from them to other companies like Yahoo and Google?” said Derek Baine, a senior analyst with Kagan. “So you’re seeing some of the cable networks have been very aggressive in developing new applications on the internet, mobile and interactive channels. That’s the wave of the future for those who act quickly and jump on the media.”