The advertising spend for U.S. radio though is supposedly going to reach a little over $20.4 billion which is an increase of a miniscule 1.5% from 2006. Radio is the first traditional form of media that has been losing its stronghold in American life as more and more people flock to online for entertainment and news.

Growth in both industry are also anticipated but at very different rates. The report says that online spending will more than double to $44 billion by 2011 whereas radio will reach $22.6 billion by the same year.

Author of the report, Ben Macklin claimed that it would not be beneficial for advertisers to jump ship from radio, but rather to combine the efforts for both industries. He was quoted in BizReport to say, “There are many synergies between radio and the Internet and, for the most part, they complement rather than compete with each other.”

Last year Britain saw a 47% leap in the online ad spending. The report expects that number to increase by 31% this year and 23% in 2008.

The continued growth will push the U.K. forward should the momentum stay in the double digits. 2007 is expected to see more than half of all online ad spending in western Europe, spent in the U.K.

There is also the projection that about one fifth, or 18%, of all marketing dollars spent in Britain will go online this year.

Should the predictions of the survey come to fruition, the value of British online advertising will more than double between 2006 and 2011, raising from 2 billion pounds(or almost $4 billion) to 4.5 billion pounds(or $9 billion).

The explosive growth of social networks will provide a valuable space for online advertising by creating an abundant availability of inventory. Currently, advertising on social networks is based on context, but with time and more ad dollars advertisers can refine promotional tactics. JupiterResearch analyst Emily Riley said in a statement, “Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory.”

Two-thirds of online display revenue will still be attributed to static images and text ads presented on social networks, however newer publishers are anticipated to progress the trend towards rich media advertising.

David Schatsky, President of JupiterKagan reported, “This is a time of considerable opportunity for online media properties, interactive advertising agencies, and marketers. Making the most of the opportunity, though, requires tracking evolving consumer behavior closely, employing appropriate targeting and measurement technologies, and a willingness to experiment with evolving formats and tactics.”