August 10, 2007 | Sponsored By | view on web

Online Ads to Exceed Newpaper Ads by 2011

Total communications spending increased 6.8 percent during last year to a record $885.2 billion, according to the VSS Communications Industry Forecast 2007-2011 from Veronis Suhler Stevenson. From 2001 to 2006, spending was up 5.9 percent when compounded annually.

The communications industry is on pace to grow 6.4% this year, first half 2007 data reportedly indicated. From 2006 to 2011, the compounded growth rate is forecast at 6.7 percent.

The level of projected growth for the sector makes "it the third fastest growing sector of the U.S. economy," the firm said. And the total is expected to exceed $1 trillion next year.

"In what would be a watershed moment in communications history, VSS predicts that Internet advertising -- including pure-play Web sites and digital extensions of traditional media -- will replace newspapers as the largest ad medium in 2011," the report said.

Media usage by institutional end-users increased 3.2 percent to 260 hours per employee last year, the forecast said. The growth, which occurred despite a decline in consumer usage, was driven by continued integration and increased use of digital platforms to enhance business performance and workflow.

But spending on alternative advertising, including Internet and mobile, grew 36.6 percent to $26.53 billion in 2006 and posted compounded growth of 23.9 percent from 2001 to 2006. Growth in traditional advertising was only 2.4 percent in 2006.

"Institutional media usage will continue to grow from 2007 to 2011, although growth will decelerate slightly as the forecast period progresses," VSS reported. "VSS expects total Internet advertising to reach $61.98 billion in 2011, surpassing newspapers as the nation's largest ad medium."

"We are in the midst of a major shift in the media landscape that is being fueled by changes in technology, end-user behaviors and the response by brand marketers and communications companies," said VSS executive James Rutherfurd in the statement. "We expect these shifts to continue over the next five years, as time and place shifting accelerate while consumers and businesses utilize more digital media alternatives, strengthening the new media pull model at the expense of the traditional media push model."

Top 10 Mortgage Industry News Stories

Based on analysis of traffic during past 30 days.
  1. Net branch Premier Mortgage Funding Inc. files bankruptcy

  2. Alt-A wholesaler Flick Mortgage Investors Inc. ceases taking new business

  3. Net branch Starpointe Mortgage collapses

  4. American Home Mortgage Investment Corp. pondering liquidation

  5. Regulators, investors accuse Hendrix Montecastro and James Duncan of $1 billion fraud

  6. Alt-A programs quickly diminish

  7. Hard money lender Quality Homes Loans acquires subprime operation

  8. IndyMac lays off around 400 employees

  9. Mortgage jobs tumble

  10. Brokers may lose licenses

Updated Media Kit

You can now get a PDF copy of's latest media kit.

The report was completed on July 25, 2007, and reflects current pricing.

The latest media kit includes data about:
  • audience profile

  • Monthly Site Traffic

  • Monthly Page Views

  • Home Page Traffic

  • Traffic for Special News Sections

  • Special Package Pricing

  • Much More!

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