Jupiter estimates that on-line advertising will total $1.4 billion in 1998, double the estimated $700 million spent in 1997.
Many carriers hope that they can offset the expense of the new systems with revenue generated by on-line advertising, shopping and gambling.
Today, only about 10 percent of America Online's revenues come from on-line advertising for everything from books to clothes to travel.
The company plans to support the service with on-line advertising.
The office is being opened with two employees in the expectation of significantly increased spending for on-line advertising by political candidates.
Indeed, the company said it had a backlog of $510 million in commitments for on-line advertising.
I.B.M. said it spent about $45 million on on-line advertising last year, or 7 percent of its worldwide media budget.
Still another group of companies has started giving computers to customers who agree to look at on-line advertising.
There are signs that on-line advertising is at last picking up.
"People have been a little myopic about on-line advertising, just looking at the fact that the dollars are smaller," he added.
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