Spending on internet marketing has surged ahead of newspaper advertising levels, according to new figures. Data from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers revealed that in 2006 a total of £2.016 billion was spent online by advertisers.
Overall online advertising spending grew by 41 per cent last year to increase the total market share to 11.4 per cent - putting it ahead of national newspapers for the first time.
It is expected that the growth will continue over the next 12 months as more homes embrace broadband and on-demand internet technology. In particular, spending on finance and technology were the main growth areas for 2006, with strong support for paid-for-searches and web banners.
"With almost all expenditure on traditional media in decline, the upward momentum of the internet reflects a new era ... which is driven by high-speed broadband take-up and user-generated content," said the IAB report.
The report also added that it is expected that online advertising will become more creative as marketers take advantage of increasing broadband speeds and demand for interactive content from users.
A report filed by Google in the US showed that its UK advertising revenue grew 83 per cent during 2006 to a total $1.6 billion, or £821 million.
The company has already overtaken Channel 4, which earned £775 million from advertising last year, illustrating how rapidly the market is shifting to new media.
