NEW YORK: Online adspend in the USA continues to expand, according to latest figures from the Internet Advertising Bureau - but growth has slowed.

The IAB data shows web adspend climbed to $4.2 billion (€3.28bn; £2.22bn)in the third quarter, a 33% increase over the same period last year, but just 2% up on Q2 expenditure.

Sheryl Drazen, svp and general manager at the IAB says interactive adspend reached $12bn in the first nine months of the year, nearly equal to the $12.5bn for all of 2005.

Search and banner ads make up more than 60% of online adspend, but video is expanding. An American Advertising Federation survey claims 43% of marketing executives believe more than one-fifth of budgets now allotted to broadcast TV will be diverted to online video by 2010.

Data sourced from Adweek (USA); additional content by WARC staff