Advertising leaders have more than embraced new media as part of successful advertising strategies, according to results of an annual survey on industry trends released by the American Advertising Federation on Tuesday morning.

Most leading ad executives expect a large share of their advertising budgets over the next few years, originally slated for broadcast and cable TV advertising, to shift to online video buys. Of the 168 respondents, 33 percent predict that switch to be between 10 and 19 percent. Budgets for 2007 online advertising are expected to rise by an average of 42 percent over 2006.

The study also shows that broadcast TV is seen as offering the "most innovative" integration with online media, while magazines are seen as "most effective" for driving consumers online.

More than half of the executives surveyed find behavioral targeting to be the "most effective" methodology for online ad targeting. Search was deemed the "most effective" new motion option and is expected to take the greatest share of the 2007 media budget. Of those surveyed, 71 percent felt strongly that the online medium is "very effective" or "most effective" for direct response, but note there is difficulty reaching older audiences -- a key demographic -- online.

A full analysis of the survey is available here as a PowerPoint document.