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Online Advertising Spend to Reach $20 Billion in '06

Online ad spend will constitute 12 percent of all U.S. measured media spending in 2006 - up from 10 percent of the total a year ago - TNS Media Intelligence projects, reports MediaPost. TNS on Tuesday released a mid-year update of its advertising outlook, revising upward its estimates for internet display ad spend: from January's estimate of 9.1 percent growth for 2006, to 13.0 percent.

Although TNS officially tracks only online display advertising (and not other forms, such as search), Steven Fredericks, its president-CEO, told MediaPost's Joe Mandese that estimated total online advertising spend, including search, would reach $20 billion by yearend, or about 12 percent of the projected $161 billion 2006 measured media ad spend.

Fredericks noted that TNS is "seeing shifts from other media into the internet," singling out B2B magazines and newspapers as examples of media losing share to online, particularly search. "That shift is not slowing down by any means," he is quoted as saying.

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