TOKYO: Online adspend in Japan soared nearly 25% in 2007, passing for the first time the total spent in magazines.

The web now occupies third place behind television and newspapers, according to figures released by local marketing conglomerate Dentsu.

Internet ad revenues for the year rose to ¥600.3 billion ($5.6bn; €3.8bn; £2.9bn), with overall adspend also increasing by 1.1% to ¥7.0191 trillion for 2007.

By contrast with online, newspapers (including free titles) saw figures fall by 5.2%, with radio (–4.2%), and magazines (–4%) also posting declines.

TV ad revenues also dipped, albeit by a more modest 0.9%, with the financial, insurance and auto sectors, in particular, reducing spend on the medium, reports Dentsu.

The expansion of broadband via computers and mobile devices was cited as one of the main drivers of online advertising's growth; as was the increase in recruitment ads on the web.

Similarly, while traditional media are still regarded as an effective tool to enhance a company's corporate image, Dentsu found small and medium-sized businesses are increasingly looking to the web.

Data sourced from Asahi Shimbun Online; additional content by WARC staff