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Online advertising hits record level

Online ad revenues continue to grow at a time when other forms of advertising are being hit hard.The latest figures from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers show that ad spend reached £1.3bn for the first half of 2007.

The report shows that spending on internet advertising is up more than 41% compared with the same period last year. IAB chief executive, Guy Phillipson, said in a statement that the online market is developing at an astounding rate and once again it is seeing exceptional growth and a significant increase in market share.
 
He added that 90% of internet users are on broadband now and nearly 40% are using wireless and the IAB is 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.
 
Paid search continued to drive the sector forward with sponsored listings growing by 44% to £762.3m. This accounts for more than 57% of total online ad spend.
 
Social networking sites such as MySpace and Facebook have yet to contribute significantly to the growth of online advertising in the UK, but the IAB expects them to be a key driver next year.
 
The total British advertising market grew 3.1% in the first half of the year to £9.1bn but it had not have been for the contribution of digital media, total ad spend would have fallen by £1.9bn.

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