Europe's internet ad market is set for five years of strong growth, according to a report from Forrester Research.

Online display ads -- which Forrester defines as banner ads, sponsorships, slotting fees, interstitials and rich media -- will bring in an estimated €793 million ($937m; £552m) across Europe in 2003, a 12.5% hike on last year. This total is expected to soar to nearly €1.4 billion by 2003, an average annual growth rate of 12%.

At these levels, internet advertising will account for around 1.5% of all European adspend, up from about 1% now. Driving the web's growth as an ad medium will be the rise of broadband, the development of simpler metrics and the efforts of industry bodies to encourage online campaigns.

Forrester believes Britain, Germany and France will continue to dominate the internet display sector. These three markets combined will account for €900m of online adspend in 2008, around 2% of their total advertising markets. A further €200m will come from the next two leading nations, Italy and Sweden.

Data sourced from: Forrester Research; additional content by WARC staff