Global spending on Internet advertising will reach $65.2 billion in 2008, representing close to 10 percent of all media ad spending, according to IDC.

It projects 15-20 percent annual growth during the forecast period, with it reaching 13.6 percent by 2011 as Internet ad spending grows to $106.6 billion worldwide.

Compared to more mature types of advertising, Internet advertising is growing at a phenomenal rate,” said John Gantz, chief research officer at IDC. “But Internet advertising is still relatively new and growing from a much smaller base.

“By the end of the forecast period, spending for Internet advertising will trail direct mail - the third largest form of advertising - by more than $30 billion, while spending on TV and print ads will each be nearly twice as great as for online ads.”

Keyword ads will remain the most popular form of Internet advertising, grabbing over a third of annual online ad spending globally. Display ads will be the next largest type of Internet advertising, capturing more than 20 percent of worldwide spending annually through 2011, followed by classified ads with close to 19 percent of all online ad spending per year.

The U.S. will lead the world in both total advertising spending and online ad spending during the period with expenditures of more than $265 billion and $45 billion respectively in 2011.

“Marketers already recognize that online advertising must be incorporated into any comprehensive ad strategy. This will continue to drive growth in online ad spending well beyond the forecast period,” said Karsten Weide, program director, Digital Media and Entertainment.

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