Report: Net advertising to quadruple to $24.4B by 2004

Internet advertising will grow more than fourfold to $24.4 billion by 2004, surpassing both network and cable television as well as consumer magazines, according to a study released on Monday. Fueling that growth will be continued strong spending by advertisers on all media, New York merchant bank Veronis Suhler said in its annual report on the media industry. It said advertiser spending grew 9.1 percent to $165 billion in 1999 and is projected to maintain a compound annual growth rate of 8.6 percent to reach $249.1 billion in 2004. "The growth will be driven largely by Internet advertising, which exploded 140.6 percent to $4.6 billion in 1999 and is forecast to increase at a 39.5 percent (compound annual growth rate), more than quadrupling to $24.4 billion by 2004," the report said. "The growth in online ad spending ... should account for nearly a quarter of total advertising growth forecast for all segments through 2004," it added. "It will propel Internet advertising ahead of cable & satellite TV ($21 billion), network TV ($19.4 billion) and consumer magazines ($16.4 billion) and to a near par with radio ($26.6 billion)." -- Reuters