UK internet adspend to boom by 46% this year

LONDON - Internet advertising spend is set to leap by 46% this year, according to a forecast by the online media agency i-level.

The agency says that advertisers will increase online budgets to keep pace with the growth of the audience size. I-level says that home internet penetration will grow by 17.5% during the year, with the growth of broadband leading to increased audiences on the internet.

Bob Wootton, director of media and advertising at ISBA, said: "This year is going to be a very exciting year across the board in interactive media -- these figures strongly support this."

I-level's figures come after US trade body the Interactive Advertising Bureau said that online adspend had grown for the first time in six quarters in December. However, that growth was well off i-level's 46% prediction, up just 1% on the previous quarter.

The agency is warning that while adspend will rise, inflation rates for new media will remain low, although certain sectors such as finance and travel could see some price rises if demand outstrips supply.

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