Each year more advertisers remember to include a certain amount of online advertising spend in their budget.

The Outsell Inc. “Annual Advertising Spend Report” says about 80% of all advertisers spend ad money on internet advertising. By 2008 that figure will be around 90%.

This year online promotion overall will see 19% more spend than last year. By calculation, that’s eight times more substantial than projected growth in radio and TV advertising and six times more than print advertising (which will grow 3.3%). On average, 50% of funds will be spent on online advertising.

This year the internet advertising sector is expected to see 26% growth in search engine spend. Google will receive $3.7 million, MSN — $4.6 million, Yahoo! — $4.6 million. Interestingly, advertisers preferring Google have a 20% smaller ad budget than MSN and Yahoo! users. Google users spend more on online ads than on other ad channels — 29.6% of their ad budget. Advertisers favouring Yahoo! invest about 27.9% of their budget online. Those preferring MSN spend 25.5%.

Chuck Richard, lead analyst and Outsell VP, believes small companies have fewer opportunities to try multiple search engines, and Google’s minimum keyword price is lower than MSN or Yahoo!.

Currently, behaviour-targeted advertising and contextual advertising are considered less effective than keyword-based advertising. But the volumes of the first two will gradually grow regardless. Marketing in wireless networks and blogs receives 2% of all online advertising funds. Wireless network spend is expected to grow 19% soon, and blog spend by 43%. Advertisers say they plan to increase ad budgets — notes Chuck Richard — but they’ll wait. The data above came from a survey of 1,200 advertisers conducted in November 2005. The combined ad budget of all surveyed equals $2.4 billion.