• Reuters, Tuesday, October 16, 2007 11 AM

As Web spending continues to hit new records each year, media execs are wondering whether the growth is sustainable. Are advertising expectations out of control? Some say that new media companies are taking advertising for granted, worrying that there may not be enough ad dollars to go around.

Says NBC Universal's Beth Comstock, whose Integrated Media division is setting up a fund to invest in new media companies. "It's just not going to be possible," she said. "There are not going to be enough advertising dollars in the marketplace. No matter how clever we are, no matter what the format is."

That's right--advertisers will go after the winners, the ones with the highest usage and the most desirable demos. And don't forget that each user has a finite amount of time to spend consuming content, too. Like any ad medium, the cream will rise to the top, but ad formats need to be sorted out first, particularly Web 2.0 sites like Facebook and YouTube, and content needs to be developed with the Web user in mind. On the Web, the networks' half-hour sitcoms and hour-long dramas aren't simply competing with themselves, but also news outlets, blogs and social networks, too. That said, a hefty chunk of TV, print and radio dollars are still set to crossover to the Web. Many firms expect Web spending to double by 2009.

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