Online advertising 'third-largest sector'

Expenditure on internet advertising now places the sector third in a list of possible promotional media, it has been revealed.

Figures from the Internet Advertising Bureau (IAB) show that the medium has reached the top-three position after being the least widely used platform in 2003.

The past three years alone have seen a £2 billion rise in the amount spent on online campaigns, the study notes.

Guy Phillipson, chief executive of the IAB, says: "It's clear marketing directors now recognise the value of online to drive their business."

"More and more are using rich media and video to build their brands, just as they do on TV," he adds.

The spokesperson also observes that the UK market is "head and shoulders" above those of other countries in the world.

Among the findings, the IAB reports that companies are making better use of key phrases to help target particular groups with their website copy while also achieving higher-ranking search results.

In other recent IAB research, the organisation revealed that soft drinks companies are realising a return on investment three times that which would typically be achieved with the average budget spent on online advertising by such firms.