In the second half of 2008, the internet's share of all advertising spend peaked at 19.8%, overtaking total press display.
Total UK ad spend fell by 3.5% in 2008 to £17.5bn, but online advertising grew its share to 19.2% of total UK advertising expenditure - up 3.7% on 2007.
Online display was the only display medium to grow in 2008, up 7.7% to £637.4m, accounting for 19% of all online advertising expenditure.
The continued growth of rich media embedded formats and video is accelerating the decline of pop ups, which only accounted for 0.4% of all online spend in 2008.
While the major portals and publishers accounted for more than half of all display advertising, ad networks increased their market share to 44% of display expenditure, up from 40% in 2007.
Paid-for search grew by 22.7% to £2bn, a 59.3% share of all online advertising. In the second half of 2008 search broke through the billion pound barrier and accounted for £1bn of online ad expenditure.
Classified ads grew 22.2% to £715.2m, a share of 21.4%. Online classifieds across recruitment, property and automotive increased, as these sectors migrated from print to digital formats.
For the first time in the 2008, the study broke out the online display figures by sector. Throughout the year the fastest-growing display sector was entertainment and media. In the first half of 2008 it accounted for 10.7% of all online display advertising. Retail also increased its spend significantly, rising from 6.3% in the first half of 2008 to 9.1% in the second half.
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