In figures exclusively revealed by Marketing, the annual report from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers puts 2004's online spend at £653m - up 60% on 2003 - with a 3.9% share of the ad market. Radio currently holds a 3.8% share, although media agencies have recently warned that radio expenditure is falling.
RAB operations director Michael O'Brien said the IAB figures were distorted as they include 'paid-for-search' and recruitment ads. 'While these revenues are clearly income to internet businesses, we don't feel they should necessarily be considered display advertising.'
In response, IAB chief executive Guy Phillipson said: 'Marketing directors look for a clear return on investment and choose a medium accordingly.
We are therefore careful to cover all forms of internet advertising, so all are included in our figures.'
In the second half of 2004, online advertising peaked at a share of 4.3%, not far behind outdoor's 5%.
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