Don't 'underestimate' potential of online advertising, Yahoo CEO says

The growth potential of Internet advertising has been underestimated because the predictions did not include advertising on video, social media or mobiles, Terry Semel, CEO of Yahoo, quoted by a Reuters report, said.

The Reuters report quoted the executive as saying that 'predictions for online advertising had only covered graphical and search advertising.'

'Video as you all know will become a major factor on the Internet,' he told the Internet Advertising Bureau Engage 2006 conference.

'It will be ever-present throughout the Internet and it will find its proper way to advertise.

'So whether it's mobile or whether it's video or whether it's more and more community (social networking sites), these factors have not gone into those numbers, so we think the actual growth potential of advertising online is really being understated.'

The executive further said sponsorship, different forms of advertising and more innovative and clever ways to integrate advertising with video online would all develop quickly.

Media buying and planning firm ZenithOptimedia has said the Internet will receive a greater share of global advertising spending this year than outdoor outlets such as billboards, and it is set to overtake radio soon, the Reuters report further said.