Internet advertising spending is increasing steadily and will reach or surpass $8 billion annually by 2006, according to a recent study by eMarketer. The report , which surveys and aggregates the findings of hundreds of research organizations, stated that Internet ad spending had stabilized and was on the rise. After falling to $6 billion in 2002, spending on online advertiting has increased by more than 12 percent.

Search engine-based advertising and broadband connectivity are among the top trends driving the new growth in online advertising. Michael Zimbalist, CEO of the Online Publishers Association, suggested the resurgence in Internet business vitality is because the medium has become a core part of consumers' lives.

But businesses are still spending conservatively both on and offline. 'The hype is gone,' said Greg Stuart, CEO of the Interactive Advertising Bureau, 'Now marketers are making fact-based decisions.'