Online advertising sales jump 41 per cent

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Spending on online advertising in the UK has grown 41 per cent in the first half of 2007, accounting for 15 per cent of the overall advertising market, new data has revealed.

The Internet Advertising Bureau (IAB) in a report compiled with PricewaterhouseCoopers and the World Advertising Research Centre said online ad spend could reach a new high of £2.75 billion by the end of the year.

The growth puts online ad spend above the size of the direct mail sector, which had a market share of 11.8 per cent.

"The online market is developing at an astounding rate and once again we see exceptional growth and a significant increase in market share," Guy Phillipson, chief executive of the IAB, said in a statement.

"Ninety per cent of internet users are on broadband now and nearly 40 per cent are using wireless. We are also seeing women and the over 50s spending far more time online, which makes the internet a very attractive medium to a broader set of advertisers."

The total advertising market grew 3.1 per cent in the first half of the year to £9.1 billion.

All major online ad formats surpassed expectations, with classified ads growing 72 per cent year-on-year as marketing budgets steadily switch from print to online. Display advertising grew 33 per cent and paid-for search was up 44 per cent.

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