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Online spending has a new favourite

Online spending looks to have a clear preference in the form of search based advertising. Advertisers are increasingly choosing to appear during searches for terms rather than placing display ads.

A report by Thomson Intermedia and KPMG reveals that advertising on sites such as Google grew more strongly in the last quarter of 2005 than spend on online display ads. It is important to note, however, that search based advertising is currently an immeasurable quantity so the report relies upon market sentiment and the views of a number of significant clients to inform its findings.

Only display adspend revenues can currently be measured, which are reported to have declined at the end of 2005. Paul Ryan, Thomson Intermedia's head of insight comments: "Anecdotally, we believe that type of advertising (search-based) is taking a larger and larger part of adspend in new media."

With online spend dominated by the entertainment, media and leisure, IT and communications, and financial sectors, the growth trend is set to continue. And with its popularity will come the need for clearer monitoring of online search adspend.

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