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One quarter of companies spending more on online ads

LONDON - Online advertising grew in popularity more than any other media in the third quarter of 2004, as a quarter of companies revealed they spent more online than the quarter before.

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According to the third-quarter 2004 Bellwether Report, a quarterly survey of marketing budgets published on behalf of the Institute of Practitioners in Advertising, only 6% of companies reported a decline in their online marketing budget.

Meanwhile, although one in four companies do not use the internet for marketing, the number allocating more than 10% of their marketing spend to the web rose to 10%.

The Bellwether Report found in its last study that 3% of ad revenues went online in 2003, surpassing the industry's own target of 2% by autumn 2004, as set by the Interactive Advertising Bureau.

John Owen, IPA Digital Marketing Group chairman and planning director of agency Dare Digital, said: "The growth of online marketing shows no signs of abating. If anything, the pace of that growth is getting faster as clients see the results for themselves. It's particularly interesting that a record number of advertisers are now allocating 10% or more of their total budget to the internet."

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