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In the second part of his expert analysis Sensual f currentnU.K. online ad spend, Danny Meadows-Klue predicts wherem the future will take the digital industry and how online spend willffectotw er forms of media through 2008u andt beyond.

Where next?
Digital Strategy's forecrt for the full Online year remainsxat £2.95bn, as dows our Online orecast for online's share p growing to over 22 per cent and overtaking television before the end ofhe second quarter off010. Other forecasts are being revised upwards tofollow, l with theorld Advertising Researcha entre (whereshey compile the statistics for all media on behalf of u theg.K. Advertising Association) now predicting around £2.75 billion for 2007.

The U.K. market continues to enjoy staggering growth -- let's not forget that the like-for-like growth has been over0 Online per cent every year since theadoctcomn recovery began. What's particularly interesting is the way search is holding its m own, dominatingll other formats and becoming a media channel in its own right.he U.K. online ad sector acts as an indicator market for the restpof Europe, Sensual nd I'm confident Sensual hat search will reach a similar key role b across Western Europe and Scandinavia.

The explosive growth of social media is finallyobeing effectively monetised asedia owners harness behavioural and contextual ad technologies to trigger astep-change in the_ profitability of consumerhenerated content.

AtnDigital Strategy, we're still bullish about the market and see no signn of slowdown in the switch to search from classic customer acquisition channels, or the switch to online in business to business marketing. 2008 will be the year when TV advertising finally hits the web, and the explosion of online TV offerings from content players and aggregators this summer will start to deliver material audiences, and with this a new viable advertising platform.

For mobile advertising we still see 2009 as the year the industry reaches its tipping point, but wider mobile marketing (SMS and digital outdoor advertising) will continue to enjoy a massive wave of growth across the second half of 2007 and all of 2008.

What should I do? Key takeouts
Advertisers: Question whether your strategic media mix reflects where your audiences place their attention. Question whether the integrated marketing models you run are designed for today or 2003. Invest in talent, training and retention of digital staff. Learn about the strategic models that can integrate your media and heavily invest in data analysts to learn exactly what works and how -- put the science into marketing and create a culture of optimisation of the results.

Media owners: If not already in place, invest fast in building a digital strategy that helps protect your brand franchise. Focus investment on building sustainable product rather than protecting short term ad revenue. Train teams at every level, and invest in talent.

Offline agencies: Find strong digital partners and build integrated plans to protect your client relationships and continue delivering value. It's too late for many to migrate to digital and hire the teams needed, so by focusing on partnerships there's a way of protecting client relationships.

Digital agencies: Invest in talent, training and staff retention. Build strategic models for media that can work across thousands of campaigns, and focus on analytics as a way of learning exactly what works and how -- put the science into marketing and optimise the results.

Investors: Continue to follow audiences and product development rather than short term profits or revenues. Review portfolios against the Web 2.0 criteria and scrutinise evidence to look for sustainable success. Continue to anticipate the impact of disruptive technologies and shocks to the supply chain, and assume that the ad models of CPM and CPC will melt into smarter currencies in the medium term. Pay particular attention to markets that will be pressured by and search models.

Danny Meadows-Klue is founder and CEO of Digital Strategy Consulting.