But Jupiter warned that marketers faced numerous challenges to make online advertising work effectively, including a dependence on regional media-buying, a lack of innovation and problems with integrating old and new media. "While the numbers paint a compelling picture for the Web as a global channel for advertisers, there are significant hurdles to making the Internet a superior global communication tool," said Evan Neufeld, vice President of international research for Jupiter.

He said imbalances between different parts of the worldcould hinder the development of Internet advertising as a worldwide communications weapon. Online ad spending totalled $3.5 billion in North America in1999 while Western Europe, the world's second largest market, lagged way behind on $400 million followed by Asia on $200 million.

Neufeld also said the explosion of competing advertising platforms such as wireless devices and interactive digital TV would make it difficult for advertisers to conduct integrated campaigns. "Brands that can innovate and adapt to the increasingly fragmented media mix online and off-line, realise and overcome traditional inefficiencies in the way in which they communicate with consumers globally will become global winners, as will media companies and agencies that partner with them to achieve these ends," Neufeld said. "There will be few prizes for second place in the race to be a globally effective brand."