Companies are spending more of their marketing budgets on internet-based campaigns than they were in 2005, a new report has revealed.

Almost a quarter of ad budgets are now spent on digital media, including affiliate marketing and search engine marketing, compared with 11 per cent three years ago, the E-consultancy Best Practice Guide to Managing Digital Channels showed.

Report author Dr Dave Chaffey told E-consultancy in an interview that this trend could continue for those who have adopted the digital platform more recently than other businesses.

He explained: "For later adopters, their spend could and probably should double over the next three years, particularly with the economic climate encouraging investments into more accountable, direct response digital media like paid search."

A recent study by US research firm IDC predicted that worldwide spending on internet advertising is likely to soar past the $106 billion (£53.1 billion) mark in the next three years.

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