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Internet advertising is like to eclipse the record $8.1.billion in revenues it took in four years ago. Net advertising began with a lot of hype and the young industry’s revenues grew rapidly on an annual basis before finally peaking at $8.1 billion in 2000.
But as the economy headed south, and many of the dot-coms that were buying ads shut down, the market started to shrink - to $7.1 billion in 2001 and to $6 billion in 2002. Overall, Internet advertising reached $7.3 billion in 2003, up 21 per cent over 2002, according to the Interactive Advertising Bureau. EMarketer, a New York research company, anticipates continued double-digit growth of 15.6 per cent, to $8.4 billion, this year, and 17.9 per cent, to $9.9 billion in 2005.
That outstrips the 5 to 7 per cent growth for advertising in general that industry watchers predict. Internet ad spending accounted for about 3 per cent of total US ad spending in 2003, the bureau reported, up from 2.5 per cent.
The Internet finally appears to be living up to its promise of becoming a viable advertising medium. Although advertising on Web sites remains but a tiny fraction of the overall US advertising market, it is one of the fastest-growing segments.
Experts say the Web’s share of total ad dollars will continue to rise as the Internet becomes more wide spread and the media marketplace more fragmented. Internet sites have benefited from improved technology and an increasing number of people who have high-speed online connections.  (NY Times)
 The projected market size for online advertising market in India in 2004 is Rs 100 crore

Today most companies spend  time and money on their website, and also on promotion of the website. There are a large number of  news and entertainment related websites today, but very few websites in many specialized fields  (especially outside North America) .  By sharing  your knowledge of your product and field with the visitors to your website , you can easily earn money from your website, without much additional effort . Unlike other mass media like television & newspaper, online advertising  allows a great degree of customization and an advertiser selling a niche product, can ensure that the advertisement  is viewed  only by readers  dealing with that particular  product. Advertising networks like Adsense (Google) , Overture (Yahoo) , Commission Junction  pay owners of  websites to display advertisements.  

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