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The Top Three of Internet Ad Spend

The Advertising Association has revealed that while businesses in the UK are spending less on traditional advertising, when it comes to the net, they’re happy to get their wallets out. In the first three months of this year online ad spend enjoyed a 42% surge amounting to a huge £648m. Add this to the £2.016 billion spend last year by British companies and online is fast catching TV. The entire advertising industry has been boosted by online spend and the upward trend, driven by high speed broadband take up and user generated content, reflects a new era in marketing and communication and consumer behaviour.

This month’s marketing minute looks at the top three ways to spend your marketing budget online.

1. Paid search advertising was the fastest growing segment of online advertising in the UK in 2006, accounting for 58% of the total, with Google accounting for about 75% of the paid for search figure.

2. Online display advertising including banners, skyscrapers and online sponsorships is the next biggest category attracting 20% of the spending.

3. Online classified advertising is the third largest sector accounting for a share of 18.8% of the advertising market.