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Kagan: New Media Ad Revs to Keep Growing

The internet, interactive TV and satellite radio will remain fast-growth areas in U.S. ad revenue, with the internet having averaged 57 percent growth per year over the past 10 years, writes ClickZ, citing the "Advertising Forecast 2006" report from Kagan Research, which covers 15 major media ad sectors. In 2005, new channels with the most growth (albeit from a small base) included satellite radio (235 percent) and interactive TV (116 percent). Total ad revenue in 2005, including traditional and interactive, increased 3.9 percent to $240 billion, according to Kagan, which forecasts that total ad revenue will reach nearly $318 billion in 2010 - and $400 billion in 2015.

"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 Kagan senior analyst Derek Baine.

"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."

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