WebProNews

UK online advertising spending reached $2.6 billion in the first half of 2007, up from $1.83 billion in the first half of 2006, according to the Internet Advertising Bureau UK.

The IAB projects that online ad spending could reach $5.5 billion by the end of 2007. The UK ad market grew by 3.1 percent in the first half of 2007 to $18.2 billion. Online accounts for 14.7 percent of all UK advertising spending according to the IAB.

"Nine in 10 UK Internet users are on broadband now, and nearly 40% are using wireless," said Guy Phillipson, CEO of IAB UK. "We're also seeing women and the over-50s spending far more time online, which makes the Internet a very attractive medium to a broader set of advertisers."

Online classified ad spending is growing 72 percent annually and makes up 20 percent of all Internet advertising spending. Internet display ads increased from 33 percent to $574 million and a share of 21.5 percent.

Paid search increased by 44 percent to $1.5 billion and took 57 percent of total Internet ad spending. The IAB said that over half of all ecommerce transactions began with a search, propelling the ad category's growth.