UK internet advertising is set to overtake the £3.4bn TV market next year, despite a lack of investment from major brand owners.
Figures from the Internet Advertising Bureau and PricewaterhouseCoopers show that online ad revenue grew by 38% during 2007 to £2.8bn.
This growth lifted the web's share of UK adspend to 15.3%, putting it on course to surpass TV to become the biggest single advertising medium by 2010.
However, online advertising is still being shunned by the UK's most powerful brand-owners, which are keeping the bulk of their media spend tied up in TV.
P&G dedicated less than £2.4m of its £203m media budget to the web last year, compared with £147m for TV. Unilever set aside just £1.4m of its £142m spend for online, while Tesco invested £2.2m of its £71m budget on the web, compared with £40m for TV.
Other big brands including Renault, DFS, Nestle and Kellogg spent less than £1m online last year, according to Nielsen.
The growth of web advertising is being driven by small brands that cannot afford to advertise on TV. It is also being buoyed by search engine marketing.
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