The UK's web publishing industry is predicted to grow by 37 per cent in 2006 thanks to a growth in online advertising, according to research by the Association of Online Publishers (AOP).

The association's annual census found publishers to be optimistic about business growth, spurred on by increasing broadband take-up, developments in mobile technology and the success of web communities. Buoyant online advertising is also contributing to increased confidence in the industry.

Forty-four per cent of AOP members said they generate more than £1 million annually from online advertising. Banners and button adverts typically make up around 45 per cent of total revenue; skyscrapers account for 17 per cent and rich media overlaid formats 9 per cent.

Around 73 per cent of publishers use a 'tenancy' or time-based system for advertising rates and 66 per cent also use a performance-related CPM (cost per thousand click) model.

• AOP also submitted its recommendations to the government's official Gowers Review of intellectual property, which closed for consultation last week. AOP welcomes the government's recognition that intellectual property is vital for the success of vibrant knowledge-based industry and said that the government should support more education about copyright. It also recommended that a 'private use' provision is not necessary because of a combination of new licensing solutions and some copyright exceptions such as fair dealing.

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