Online spending rose 41% to over £2 billion in 2006, as television revenues fell and figures for the press stagnated.

Online ad spending represented 11.4% of total ad revenues. This compares with the global share of online ad spending at about 5.8% (about 7% in the US).

Newspapers’ ad share amounted to £1.9 billion, roughly 10.9% of the market.

"Advertisers are continuing to switch more of their budgets online to build their brands and interact with their customers," said Guy Phillipson, chief executive of IAB. "With consumers now enjoying even faster broadband and installing wireless routers in their homes, the growth of online advertising in the UK is set to continue unabated."

That the Internet has become UK’s second medium after television doesn’t have to be bad news for newspapers though. Based on their experience, they know how to collect user-generated content, blogs and videos in a presentable format online.

Source: Media Guardian