The internet advertising market will increase 32 percent next year, reaching $16.6 billion, fueling growth at Google and Yahoo, according to Credit Suisse First Boston analyst Heath Terry, who had previously forecast 21 percent growth, writes Bloomberg. Moreover, sales of online ads that have animation, sound or interactive features (including video) will grow 66 percent next year - the fastest-growing area of web advertising, Credit Suisse predicts.

Nearly half of the ad executives in a Credit Suisse survey intend to increase internet spending by almost 30 percent in the next year, according to the report.

"We're seeing a shift to a more diverse set of media choices," said Mary Baglivo, chief executive officer of the New York office of advertising agency Saatchi & Saatchi. "Certainly a move away from what had traditionally over the years been the vast majority television and print."

Sponsored links and display ads will remain the two most popular types of online ads in 2006, Terry forecasts, but display ads will be the slowest growing as spending on rich media, which are forecast to overtake banner ads in 2008.