About $1 Billion in ad spending shifts to the Web, from TV and Newspapers

Interesting article on how Online Advertising spending has increased by about $1 Billion over the last year, while spending on TV and Newspaper ads have reduced by an equivalent amount over the same period.

Whether online ads would continue to increase in absolute dollars at that same pace is not that clear. As an IAB report indicates, web advertising infact decreased, to $5.8 Billlion in Q1 2008, down from $5.9 Billion in Q4 2007.

Newspapers have indeed suffered significantly due to the 12% y/y decline in ad spending, as reflected by their falling stocks, as this post indicates. In response, newspapers are scrambling to get exposure to the ad distribution options that the web represents, as indicated by GCI's recent investments in startups.