Investors and industry watchers began to seriously question the efficacy of the medium. But some say this is merely a Chicken Little syndrome. Baker said the doubting attitude is reminiscent of the early days of cable. Before cable giant Ted Turner commissioned studies that supported the viability of cable advertising, it didn't take off. They also surpassed outdoor ad sales in total dollars spent in 1999.
Researchers predict phenomenal growth for online advertising.
Altogether, Net advertising will represent close to 8 percent of the total ad market in the United States by 2005. In addition, marketers plan to increase ad spending online at a higher rate than on any other medium. Although these figures are on a steep climb, industry watchers are relatively unimpressed by the levels of growth compared with previous years. By comparison, spending on Internet ads grew 160 percent during the fourth quarter of 1999, compared with the same period a year earlier, according to IAB figures. Web sites are now trying to work more closely with advertisers to offer more results for the dollars.