Avenue A | Razorfish, an interactive agency and buyer of digital online media, have released their annual digital outlook guide for marketers and advertisers.

Internet advertising boomed last year as revenues across the industry grew 34 percent over the total for 2005, when advertisers spent $12.5 billion.

Click fraud, along with other methods of generated false or inflating statistics concerning ad impressions, has been the subject of much debate throughout the industry. Some reports indicate that fraud is rampant throughout the online advertising realm, while other statistics suggest that click fraud and other shady practices aren’t as prevalent.

Online advertising is meeting a crossroad in 2007, shifting from a focus on generic keyword targeting and universal search results to a more targeted, behavioral-based model. Page views and traditional SEO will lose focus, and Google is leading the way on all roads at once.

Expect a bull market for Internet advertising in 2007. Expect that bull to keep charging for the foreseeable future. In fact, says Susquehanna Financial Group (SFG), 2007 will mark a crucial turning point in the industry. Think Google. Think targeting, video, social networks, and online gaming. And don’t stop thinking about them. But forget about the page view altogether.

Billions will be spent in online advertising and social networking, but if the predictions are right then Facebook probably won’t be one of the companies being sold this year.

Instead of spending tons of cash on providing substantial assistance to federal investigations of torrent trackers, maybe the MPAA should use those funds to educate its member studios about the mad, mad, mad, mad world of Internet advertising.

Google is on pace this year to capture a quarter of all online ad spending, according to eMarketer, further increasing its dominance in the sector as the sector itself is projected grow at blistering rates. As Google snatches market share from Yahoo, online advertising in general will gain more ground against traditional marketing vehicles by 2010.

Nielsen//NetRatings released a report on Tuesday revealing the top ten fastest growing online shopping destinations during the back-to-school rush. The results indicate that timing is important for targeting the right market; too early or too late gets an “F.” But the niche is rules them all.

Over 82 percent of Chinese Internet users report that the Internet is their main information channel, says Nielsen//Netratings. With such a huge population adopting broadband at a rapid pace, the Chinese Web is as ripe for advertising as it can be.

The Web as an advertising medium is vastly underexploited in light of a unique new study revealing that Web usage dominates all other media in daily use. Additionally, the study found, chronic Web surfers tend to spend more freely than TV watchers.

Yahoo and MSN trailed behind Google in the share of spending in sponsored search, and the first quarter of 2006 saw a 9.3 percent increase in overall online ad spending.

The packaged-goods world of products from macaroni and cheese to cereals to cake mixes and beyond has been dominated by powerful corporations with a lot to spend on advertising; they have begun to shift more of those dollars to online advertising in greater amounts.