Online advertising is increasing at an incredible rate and is expected to overtake TV by 2009, according to new research.

This rapid rate of growth, more than nine times more than that of the complete advertising sector, has defied previous industry expectations and establishes online spending as the third largest market sector overtaking regional newspapers and press classifieds.

The recent online ad spend of £2,812.6 million represents a 38 per cent increase from 2006 to 2007, having grown from an 11.4 per cent market share to one of 15.3 per cent.

The statistics were announced by the Internet Advertising Bureau (IAB), prompting their chief executive, Guy Phillipson, to herald the UK as “head and shoulders above all other major world markets”.

He added: “It’s clear marketing directors now recognise the value of online to drive their business, and more and more are using rich media and video to build their brands, just as they do on TV.”

The biggest spenders in the online advertising sector proved to be the recruitment industry with a market share of 25.7 per cent, with automotive second (11.4 per cent) and technology (10.4 per cent) overtaking finance (ten per cent) for the third spot for the first time ever.

This news follows last month’s announcement by the IAB that online spending in the UK had overtaken national newspapers for the first time ever in 2006.

Related Topics: General Marketing