Paid-for searches boost advertising spend

Paid-for searches on Google, Yahoo! and MSN are the fastest-growing form of media advertising on the web, according to a recent report by Starcom UK.

And overall advertising spend on the internet in the UK increased by more than 50 per cent in the first half of 2004, compared with the same period in 2003.

Paid-for searches, where advertisers pay search engines to have their sites feature more prominently in search results, accounted for nearly one third of the spend. Display advertising still accounted for nearly half, with classifieds at 12 per cent.

A recent report by JupiterResearch says the UK is the driving force behind online advertising growth in Europe. European online advertising increased 30 per cent in 2004, totalling $2.8 billion.

According to AOL, 42 per cent of consumers have switched to alternative brands as a result of using the internet to inform their purchase decisions. Fifty per cent now use broadband and one quarter use the internet every day.

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