The money spent on online advertising by the retail sector is set to double by 2007, increasing almost four-fold by 2010, according to research from the Internet Advertising Bureau.
Retail online adspend stood at £31.1m in 2004 -- just 4.7% of total online ad spend-- and is forecast to increase to £65m by the end of next year and to over £120m by 2010.
The increase is an attempt to counter the current retail slump, which saw high street sales fall 2.4% in May, according to the IAB. The same month saw a 30% year-on-year increase in online shopping.
Guy Phillipson, IAB chief executive, said the group is seeing the beginnings of a trend that can not be reversed, with the traditional retail sector unready to reap the benefits of e-commerce and online advertising.
"Now, with talk of a high street slump, retailers must invest in the Internet and strengthen their online presence to maintain market share.
"Online shoppers are enjoying complete control in the buying process. The IAB is here to help retailers understand the online behaviour of their audiences and how to make it easy and rewarding to do business and build brands online," Phillipson added.
Total internet advertising for 2004 topped £653.3m and by the end of the year online had overtaken radio with a market share of 4.3%, compared with radio's 3.8%.
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