"The determining factor will be the sheer volume of online opportunities," said one agency executive participating in the survey. "Will there be a handful of sites that rise above the fray or will there be so sites to choose from that the media dollars can't possibly cover enough bases to be effective?"

The study also indicates that ad executives believe traditional broadcast TV outlets will be the most effective in integrating traditional TV and online media into seamless marketing solutions for advertisers and agencies. Asked which media they believed to be most "innovative" at leading such integrations, 21.7% of the respondents cited broadcast TV, followed by newspapers and magazines (18.5% each), cable TV (15.2%), and radio and out-of-home (8.7% each).

Asked which traditional medium is most effective in terms of driving traffic to advertiser Web sites, 26.0% cited magazines, followed by broadcast TV (17.8%), cable TV (16.4%), newspapers (13.7%), radio (11.0%), and radio (8.2%).

The survey also indicates that online ad budgets are expected to rise by an average of 42 percent in 2007 vs. 2006. Respondents said they expected 23.2% of their total 2007 ad budget to be spent online, up from 16.3% of their 2006 advertising spending.

The study, which was prepared by Atlantic Media Company, is the fourth annual survey to be issued by the AAF.

Share Of TV Ads Shifting To Online Video By 2010

Less Than 1%:     2.6%

1-5%:             9.8%

6-9%:            11.1%

10-19%:          33.3%

20-29%:          34.8%

30-39%:          11.1%

40-49%:           5.9%

More than 50%:    1.3%