Online ad spending is set to grow faster than any other segment of the market at 18%. This is exactly the same as last year's report (by a different researcher). At this rate, online ad spending will double every 4 years. Search advertising is expected to lead the growth rate, and online marketers surveyed for the forecast reported that they expected to increase search advertising by an average of 39% in 2007.

Pay-per-click advertising will fall a few percentage points from the previous years as advertisers move away from PPC because of rising click costs. Also marketers are moving away from PPC is because search engine optimization and email marketing campaigns are contributing more traffic.

Not all advertising will increase in 2007. Ad revenue from television, movies and radio are expected to decline as much as 3%. Meanwhile, print advertising, holding steady at 40% of the market share in the past few years, is also expected to drop this year as the online spend rises.

According to this report from OutSell Inc, online advertising is an easier market to brand and target. Getting relevant audiences to your website can provide an interactive experience better than TV, radio, print, yellow pages and classifieds. It is more track-able and can provide tangible return on investment

This comes on the day that Google reports that they increased revenue by 67% from $1.9 billion to $3.2 billion for the fourth quarter. That's a run-rate of at least $13 billion for the year. Not bad for a 6 year old company.