Spending on internet marketing will rise to $65.2 billion (£32.9 billion) globally by the end of 2008, a new report has predicted.

Online marketing will attract almost ten per cent of investment in all forms of advertising this year, with this forecast to rise to 13.6 per cent by 2011, according to IDC’s study.

Keyword ads will continue to dominate online advertising spending over the next few years, while classified and rich media ads will also grow in popularity, the company stated.

The four most popular online advertising categories – adult content and gambling, information, electronics and computing – will account for $5 billion of spending each by 2011.

"Marketers already recognise that online advertising must be incorporated into any comprehensive ad strategy," Karsten Weide of IDC said.

"This will continue to drive growth in online ad spending well beyond the forecast period."

According to a Harris Interactive and MTV Networks study, advertisers are likely to reap the biggest rewards by deploying marketing campaigns across a wide variety of channels.

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