AdAge reports:

"We're actually pretty confident that by 2010, the majority of our media mix will shift to digital," Mich Mathews, senior VP-central marketing group at Microsoft, said in an address at the American Association of Advertising Agencies Media Conference

In 2006, Microsoft spent $447 million in measured media [in the US], according to TNS Media Intelligence. The media-spending tracker said 18% of that was spent on internet advertising - far and away above the [US] average. Still, it laid out $69 million on network TV, $33 million on cable, $118 million on magazines, $67 million on business to business and $29 million on national newspapers.

Ms. Matthews said the shift is simply an effect of following consumers, who are spending more and more time on the web

You should also check out this brief video of some of the other things she said in her speech:

The way that relationship marketing agencies and ad agencies - that line - when is something an online ad and when is it a piece of direct response?