Internet will surpass radio as an ad medium this year, says eMarketer

Online advertising dollars will surpass radio advertising this year for the first time and by 2011 online advertising dollars will be twice radio advertising dollars, says a new report from eMarketer Inc., “Radio Trends: On Air and Online.”

Online advertising will reach $21.7 billion this year compared to radio’s $20.4 billion, eMarketer reports. In 2006, online advertising totaled $16.9 billion and radio $20.1 billion. Next year, online advertising will total $28.2 billion and radio $21 billion.

EMarketer’s projections of ad spending on Internet and radio (in billions) are:

• 2006, $16.9, $20.1
• 2007, $21.7, $20.4
• 2008, $28.2, $21
• 2009, $34, $21.5
• 2010, $39, $22.1
• 2011, $44, $22.6.

The rise of the importance of the Internet is illustrated by a survey from Arbitron and Edison Media Research that eMarketer includes in its report. In 2002, 26% of consumers considered radio most essential to their lives while 20% said Internet. In 2007, radio got a 17% response rate and Internet 33%.