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Online advertising networks 'set for massive growth'

A new report has said that UK media spend on online advertising networks will soar in 2008.

Research by E-consultancy suggested that spending on online advertising networks will increase 60 per cent in the year to reach £385 million.

It explained that ad networks continued to grow at a faster rate than online display advertising. The report said this was because companies were increasingly seeing the potential for return on investment and ad networks' abilities to reach the right audiences.

"Online ad networks operate in one of the most competitive spaces in the digital sector, and often one of the most controversial," Linus Gregoriadis, head of research at E-consultancy, explained.

"But in spite of their challenges, networks continue to benefit as marketers raise their digital budgets and recognise the economies of scale networks bring to campaigns.

"The best networks have been able to differentiate themselves with the use of behavioural targeting to help advertisers target their audience more effectively."

Overall, the report suggested that overall display advertising will grow by 30 per cent in 2008 to £770 million and that networks will account for 50 per cent of this spend. ADNFCR-1536-ID-18590299-ADNFCR