Advertising is to become the fastest growing section of the Internet, according to a new report from researcher Frost and Sullivan.
Internet advertising is caculated at 3.4% of all advertising spending at present. But in six years time, the report predicts, this figure will grow to 22.2% as more ads migrate to the Web. By 2002 the total spend on Internet advertising will be $5.48 billion (#3.43 billion).
As new technologies such as Java and VRML take off, advertisements will become ever more interactive, Frost and Sullivan predicted. "Web ads will no longer be static pages, but messages intertwined with the subject matter or information," said analyst Lane Gorton.
In addition, the market for intranet software, equipment and services is set for explosive growth, says a study from telecommunications research company Killen and Associates. An annual compounded growth rate of 49% over the next five years is predicted, with the market rising from $2.7 billion last year to $20 billion in 2000.
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