SYDNEY: The Australian online advertising market is set to grow by 17.6% this year to a value of over A$2 billion ($1.4bn; €1.0bn; £909m) according to forecasts from the Internet Advertising Bureau, making it the country's second largest advertising medium, behind TV.

Online adspend totalled A$1.7bn in 2007, and registered growth of $364 million, or 27%, for the year as a whole, according to figures compiled for the IAB by PriceWaterhouseCoopers.

By contrast, online ad revenues are set to grow by just 9% per quarter in the UK, and by 15% in the US, according to figures from WARC.

Internet ad revenues also grew by 22% in Australia in the fourth quarter of 2008, and the IAB's survey of over 1,000 online publishers suggests that while the medium's expansion would slow this year, growth would remain strong.

Says Paul Fisher, chairman of the Australia's IAB: "There's definitely a migration towards more measurable media. I think the future of online is looking pretty positive."

Analysts predict that total adspend levels in Australia will fall by between 2% and 6% this year, following on from growth of around 4% in 2008.

Data sourced from Sydney Morning Herald; additional content by WARC staff