According to Outsell Inc., based in Burlingame, Calif., online advertising expenditure has grown so fast that in 2008 that it is projected to surpass ad spending on TV, radio and movies combined for the first time ever. 

Wait…..really?

Well, only if you consider web development costs as part of Internet advertising expenditure.  The report counts the money companies spend on their own websites as part of their advertising budgets, using the logic that websites are ostensibly used for marketing.  Its data indicates that companies are expected to spend $105.3 billion online in 2008, which beats the $98.5 billion they’re projected to spend on TV, radio and movies.  Still, give the fast paced growth, Internet advertising is not expected to eclipse the $147 billion likely to be spent on print media, up 12% from the previous year.

All in all, Internet advertising is riding a fast wave of growth.  According to the report the media platform is expected to grow 12.3% in 2008, most of which will be spent on companies’ own websites, rather than on marketing agencies or search or display ads.

The 1,088 US-based companies surveyed will spend $61.5 billion, or 61.8% of their online advertising and marketing budgets, on their own sites, siphoning away money from other options.

The report also predicts that advertisers will still spend the most money on print media in 2008. Companies will spend 35.5 percent of their budgets on print media in 2008, and will spend nearly a third of that on newspapers.  That’s down 4 percent from the previous year.