Pay-per-click (PPC) campaigns were the most popular form of internet advertising among British firms last year, Ofcom has revealed.

The regulator said in a new report that spending on PPC rose by 39 per cent in 2007, reaching £1.6 billion in total.

Overall spending on online advertising surged by almost 40 per cent to £2.8 billion, with the categories of classified and display ads each attracting some £600 million of expenditure.

Furthermore, the online medium overtook ads on TV channels such as ITV1, Channel 4, S4C and five in terms of ad spend for the first time, Ofcom noted.

The report also showed that Britons are spending significantly more time online than they did in 2005, while converged communications such as web radio are gaining in popularity.

A recent study by E-consultancy’s Dr Dave Chaffey revealed that almost a quarter of marketing communications spending now goes online.

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