In the report, Morgan Stanley’s Mary Meeker predicted the Internet could grab 13 percent of about $243 billion in total U.S. ad spending in 2010, compared with 7 percent, or $13 billion, of $192 billion in 2005 ad spending. Internet advertising will continue to take dollars from traditional media, as spending triples online but grows slower or stagnates on television and in newspapers.

The growth will be supported by increasing crowds of American Web surfers — rising at 3 percent a year, to an estimated 229 million by 2010. As online advertising targets those users more effectively with better, more measurable returns, advertiser budgets will migrate in greater numbers to the Web.

By category, Meeker sees search advertising growing 25 percent a year to $15.8 billion, accounting for 50 percent of total U.S. online ad spend, compared with $6.7 billion, or 42 percent, today. The analyst’s figures assume Yahoo’s much-anticipated upgrade to its search and advertising platform performs as expected.

Display ads will make up 20 percent of ad spending, or $6.2 billion, compared with 26 percent, or $3.1 billion today.

The analyst predicted rich media advertising will grow 26 percent each year to $3.2 billion in 2010, and account for 10 percent of ad spending. (Advertisers will spend $1.1 billion, or 7 percent of their budgets, in the nascent medium in 2006.)

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