"We are in the midst of a major shift in the media landscape that is being fueled by changes in technology, end-user behaviors and the response by brand marketers and communications companies," said James Rutherford, executive VP and managing director at VSS. "We expect these shifts to continue over the next five years, as time and place shifting accelerate while consumers and businesses utilize more digital media alternatives, strengthening the new media pull model at the expense of the traditional media push model."

Spending on alternative advertising, including Internet, mobile and video games, among others, grew 36.6 percent to $26.53 billion in 2006 and posted a compound annual growth rate (CAGR) of 23.9 percent from 2001 to 2006. Traditional advertising grew only 2.4 percent in 2006 to $183.21 billion with a 2.8 percent CAGR over the five-year period.

"Leading national advertisers have accelerated their diversion of dollars from traditional print and broadcast media to alternative digital platforms to combat media and audience fragmentation," Rutherford said.

Alternative advertising and marketing will continue to spur growth through 2011, as alternative media are expected to expand at a CAGR of 17.4 percent to $197.11 billion, while traditional advertising and marketing will post an aggregate CAGR of 3.2 percent to $438.99 billion in 2011.

- Reported in Shoot Magazine August 08, 2007