About 30% of all media is now consumed online with the Internet now running a close second to TV as the medium consumers devote the most time to. Despite all of those eyeballs

on the web, only 7.5% of advertising dollars are currently spent online. That is a huge imbalance that will be corrected over time, creating a gigantic flow of new ad dollars to the web. The immediate question though is how did that gap between market share of consumers and market share of advertising become so large? Why aren't advertisers already spending the share of their budget that they should be online?

The answers to those questions are in an interesting new column by Steve Latham at Online Media Daily. Latham cited a new McKinsey study of 410 marketing executives that found that they were so far behind the curve because they and/or their advertising agencies simply did not have sufficient

30% of media is now consumed 
on the web yet advertisers only 
spend 7.5% of their budgets online. 
That makes no sense, so what's up?

capabilities to properly redirect their resources where they belong, even though they are wasting untold amounts of money on traditional outlets that no longer deliver the audience the web does! They are like a giant battleship trying to turn on a dime. Here is the survey breakdown giving the execs' answers as to why they have been so slow to react:

There are lots of other interesting details in the article so check it out. Those ad dollars, and a lot of them, are coming to the web. It's just a matter of exactly when they will arrive. 
(Posted Feb. 14, 2008)