The Institute of Practitioners in Advertising's (IPA) Bellwether Report reveals that 25.8 per cent of firms increased internet budgets in the three months to March; the strongest gain since the first quarter of 2004.
Only 22.7 per cent of marketers increased overall budgets - the weakest since 2002 - while traditional media budgets were cut for the sixth quarter in a row.
The report puts online at four per cent of total ad spend.
It comes after the UK IAB reported that online broke the £1 billion barrier last year. It put online spend at 7.8 per cent.
See Analysis, p17.