It looks like 2010 has turned out to be the important year in the transition of ad dollars to online.  eMarketer estimates that spending in online ads will exceed spending in newspaper ads in the US.  Here's a look at their estimates:

Unfortunately for newspapers, they have not been able to capture lost revenue online.

In 2010, online makes up about 11.7% of all US newspaper ad spending, a proportion set to rise to 13% next year.

Ad spending on newspapers is expected to continue its decline. eMarketer estimates that print newspaper spending has already been cut in half since 2006, and online has done relatively little to make up the difference. By contrast, total US online ad spending will continue double-digit growth through 2014, when it will surpass $40 billion.

Read the full article here.