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Internet Advertising Spending to Double its Share by 2010

For Immediate Release
Contact: Jenny Barrett or Chelsey Tyson
Parks Associates
972-490-1113

Internet Advertising Spending to Double its Share by 2010
Interactivity and Targetability Are Key Merits for Winning Ad Formats

Dallas, Texas December 8, 2005 - Spending on Internet advertising will account for 10% of total U.S. ad dollars in 2010, doubling from 5% in 2004, according to The Changing Face of Advertising in the Digital Age, a new report from Parks Associates. This increase represents a CAGR (compound annual growth rate) of 14% over the next five years.

The report, which includes data from Parks Associates' consumer study Digital Entertainment: Changing Consumer Habits, also finds that almost 21% of Internet users consider Internet advertising as the most relevant ad format for them, outscoring more traditional media formats such as newspapers, magazines, and radio.

"In the next few years, the Internet will become a mainstream ad platform and attract top dollars from advertisers," said Harry Wang, research analyst at Parks Associates. "Because the Internet is an interactive and versatile platform and offers rich consumer usage data, advertisers can improve their ad targetability and achieve better results."

Such benefits are extremely important to advertisers, who have been plagued by audience and media fragmentation and a lack of in-depth media consumption data from traditional ad formats. Many large companies with familiar brands, including Anheuser-Busch, Procter & Gamble, Verizon, and Wachovia, have been moving money out of network TV and to the Web, demonstrating advertisers' growing confidence in Internet advertising.

"Traditional media companies are fully aware of this ongoing change in the advertising industry," Wang said. "The Internet has altered the standard for the entire ad world, and traditional media have to respond by making their media platforms more interactive and results-oriented."

The Changing Face of Advertising in the Digital Age is a comprehensive industry report analyzing the paradigm changes taking place in the advertising industry. It probes the challenges and opportunities created by digital technologies for the advertising industry, examines new advertising solutions and business models, analyzes consumer uptake, and predicts industry growth patterns and winning solutions.

The Digital Entertainment: Changing Consumer Habits project is an Internet-based survey instrument of 2,084 U.S. consumers in households with Internet access, including 270 teenagers ages 13-17. The study analyzes consumer behavior for digital entertainment in the home, including product purchases, service subscriptions, use of home computers and the Internet for multimedia purposes, and interest in new Internet- and carrier-based services.

For additional information on The Changing Face of Advertising in the Digital Age or Digital Entertainment: Changing Consumer Habits, visit http://www.parksassociates.com or contact 972-490-1113

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. http://www.parksassociates.com.