Advertisers in the UK are spending more on Internet advertising than on newspapers ads. Spending on UK internet advertising surged in 2006, overtaking newspaper ads for the first time, according to a new report from the UK Internet Advertising Bureau.

Online advertising expenditure jumped 41.2% to £2.01bn during the year. In contrast, spending on national newspaper ads grew just 0.2% to £1.9bn, taking a 10.7% share of the market.

“With almost all expenditure on traditional media in decline, the upward momentum of the internet reflects a new era … which is driven by high-speed broadband take-up and user-generated content,” according to the report.

Internet Media Is The Future Of Advertising

Advertising across all traditional media combined fell by £466.1 million year-on-year, a 2.9% decline. However, with the increase in online advertising spend, the entire market grew by 1.1%.

In the second half of 2006, online advertising experienced its highest market share ever – a 12.4% share of total UK advertising. In 2006, online display advertising (including banners, skyscrapers and online sponsorships) rose 35% year-on-year.

Traditional Internet advertising formats, such as banners, were reinvigorated by an increase in the use of rich media, which includes graphics, audio, video or animation. Once again online display advertising is experiencing growth far greater than any other display medium.