Internet advertising in the U.S. will continue to grow fast even with the current economic conditions that will lead to a contraction in ad spending over all, according to IDC.

Internet advertising will grow about eight times as fast as other advertising. Over all Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012.

The Internet will go from the number 5 medium to the number 2 medium in just five years, making it bigger than newspapers, cable TV, broadcast TV, and second only to direct marketing.  Video advertising will attract the most marketing dollars over the next five years. Its revenue will grow from $0.5 billion in 2007 to $3.8 billion in 2012 at a compound annual growth rate (CAGR) of 49.4 percent.

“The size of the online video audience as well as the time it spends watching video is sure to increase as broadband access penetration increases, connections become faster, and as more premium content is available,” said Karsten Weide, program director, Digital Media and Entertainment.

“What will also drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly also where they want.”

Search advertising will remain the one advertising format that will receive the most revenue over the forecast period in the U.S. This means that for any media company search must be a key part of its strategy.

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