Online advertising in the UK is officially booming.

A report by accountants PricewaterhouseCoopers, the Internet Advertising Bureau and the World Advertising Research Center shows British internet adspend in 2004 soaring by 60% to £653.3 million ($1.2bn, €953.2m).

Online has overtaken radio's share of the market for the first time. Internet ads claimed a 3.9% share, just above radio's 3.8 per cent. The IAB is confident it will outstrip outdoor advertising by 2007. Outdoor had a 5% share last year.

The report says online ads are most popular among financial services firms, travel companies and recruiters.

Comments IAB ceo Guy Phillipson: "As consumer confidence about using the internet grows it is only logical that online advertising should grow too."

He attributes the growth of the medium to a "triple crown of cheap broadband, cheaper technology and ever more compelling content".

And he adds: "The audiences are there - more marketers need to wake up to the brand building and direct sale benefits of the internet as a maturing medium."

Data sourced from; additional content by WARC staff