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Online adspend set to top £1bn

Online advertising in the UK will become a £1bn industry by the end of the year, according to the Internet Advertising Bureau, which this week will announce that the medium has overtaken outdoor's share of overall adspend.

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Brands spent £490m online in the first six months of 2005, an increase of 62% on the same period in 2004, giving rise to the prediction that it would break the £1bn barrier by the end of this year.

Online advertising represented 5.8% of the total advertising market for the first half of 2005, beating outdoor's 5.1% share and radio's 3.6% share, which online overtook at the end of 2004.

The half-year figures are collated by the IAB in conjunction with PricewaterhouseCoopers and the World Advertising Research Centre and are viewed as the definitive measure of the online advertising industry.

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