Spending on internet marketing and advertising in the UK will grow by 20 per cent this year, a new report has suggested.

Expenditure on the medium will continue to rise despite the effects of the ongoing credit crunch, although growth will be lower than last year, PricewaterhouseCoopers (PwC) said.

The search engine marketing sector will see particular expansion in 2008, with spending expected to increase by 30 per cent this year, the forecast indicated.

A number of forecasts for the internet advertising sector have made similar predictions, citing the measurability and potentially solid returns offered by search as some of the reasons for its popularity.

"Within online, search appears most resilient given its clearly attributed return on investment," said Eva Berg-Winters of PwC.

"Classified advertising should continue its online migration, offsetting overall weakening in the category."

According to E-consultancy, UK digital agencies believe they will experience positive growth in the next year.

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