Web advertising is pulling ad dollars from TV and threatening to decrease the $60 billion per year market for broadcast network, cable and local TV ads, reported the Los Angeles Times.

The Los Angeles Times also reported that online ad revenue increased 33 percent last year to $9.6 billion in the U.S. and is expected to grow.

This coverage from a major national newspaper's business section signifies the impact interactive marketing is making on traditional media.

Forester Research found that consumers spend 34 percent of their media consumption time on the internet. TNS Media Intelligence reported that the top 50 domestic marketers have cut their TV ad budgets while they have increase their online ad budgets within the last four years.

Analysts predict the interactive marketing industry to continue to grow for several reasons such as broadband penetration.

"Cable and telecommunications companies have dumped billions into delivering and marketing broadband to the home. Fifty percent of all at-home users are on a broadband connection, which completely changes their media consumption habits. This trend is undeniably powerful and forcing the most 'in denial' marketers to pay attention," says Rick Parkhill, president, iMedia Communcations, Inc.

Another aspect of interactive advertising's increase of momentum is metrics.

"CMOs are being pressed by the CFO and CEO types to prove return on marketing investment. Radio, TV, newspapers and magazines have all been rocked by not just questionable metrics, but scandalous tactics that overstate audience, viewership, readership and listeners. The internet stands above all other media in its ability to provide metrics that are verifiable. The metric models that are being established with internet publishers and technology companies are making other media stand up and take notice," adds Parkhill.

Additional resources:

Read the LA Times' "Web Pulls Ad Buyers From TV" (free registration required)