Saw this today in an AP report on Yahoo!’s 1Q earnings:
In a report released earlier this month, Merrill Lynch media analyst Lauren Rich Fine estimated spending on Internet ads this year will increase 27 percent to $14.5 billion, surpassing magazines and the Yellow Pages — both more established media markets.
This is interesting and inevitable perhaps. Our forecast has YP a bit north of $14.5 billion in the U.S. this year. A more important issue is the relevance of the comparison. YP is essentially a local and directional medium. Interent advertising is all over the map, with a sizable local component. We think the more useful comparison is between Yellow Pages and the local component of online advertising. Still, this is an interesting milestone.