The annual spend on internet advertising and online marketing will be over the $61 billion (£30 billion) mark by 2012, according to a new report.

The study, conducted by Forrester Research, found that online publishing and social media will prove to be vital to the future growth of the advertising market and that by this date search marketing spends will have tripled.

Commenting on the results Shar Van Boskirk, the lead author of the study, said that the report would force online publishers to make their product more attractive to internet marketers.

"Publishers will have to advance their media as the marketer is advancing to provide the ability to better target ads, provide advanced capabilities and provide richer ad formats," he said.

It was estimated that the figure for search marketing could reach as much as $25 million and predicts that web advertising will become fiercely competitive.

"Interactive marketing growth over the next five years will be driven by mainstream businesses that embrace the unique value of interactive tools that engage customers in new ways," the report states.

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