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Search dominates online ad market worth £1.4bn

The latest results from the Internet Advertising Bureau and PriceWaterHouse Coopers reveal that UK internet advertising reached £1,366m in 2005, taking a 7.8 per cent share of the overall advertising market.

Paid-for search strengthened its dominance, with 56.2 per cent of the total – an increase of 78.8 per cent year-on-year. Display advertising made up 24.6 per cent (up by 44 per cent), while classified advertising took 19.2 per cent (up by 62 per cent).

UK online advertising rose by 65.5 per cent year on year, compared with overall UK advertising market growth of 2.5 per cent.

The IAB predicts that UK online advertising spend will reach £2bn in 2006, and could overtake national press ad revenues.

Recruitment advertising was worth 22.1 per cent of the online advertising market. Significantly, spend on entertainment and media saw the most significant growth, from 6.2 per cent to 10.2 per cent, as broadband uptake has meant consumers are increasingly being engaged by video streaming and more complex "rich media" advertisements.

Source: IAB UK

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