Interactive Tv Ad Spending to Grow

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NEW YORK — Interactive TV advertising is expected to account for 6.3 percent of total U.S. TV ad revenues by the end of 2005, according to a report from TRACE strategies.

The Boston-based high-tech research firm predicted Monday that total U.S. revenues from interactive TV advertising—interactive program guides, video-on-demand, walled gardens and enhanced/interactive video—will reach $2.1 billion three-and-a-half years from now, a 114 percent year-over-year growth rate. Interactive program guides will take the largest share of total interactive TV revenue, with over $794 million in revenue by the end of 2005, according to TRACE.

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