The World: New York - Media companies to lose ad revenue to online

About 30 per cent of the ad revenue currently running through traditional media companies will shift to online operations such as Yahoo! and Google within five years, according to a report from IBM Global Business Services.

The shift could involve business worth billions of dollars, Saul Berman, a co-author of the report called The End of Advertising As We Know It, said.

Two-thirds of the 80 industry executives polled for the survey said they expected 20 per cent of today's ad revenue to move away from media channels with rates based on the number of impressions to those that are tied to actions, such as ad click-throughs.

Industry commentators said that although IBM's conclusions were nothing new, the size and speed of the shift was astonishing.

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