Internet advertising in the United States is to account for 20 per cent of all money spent in the industry, according to a new report.

Figures released by Outsell claim that advertisers are set to increase their spending in the online sector by around 18 per cent over the next 12 months.

The news comes as spend in the radio, film and television advertising areas will fall by 3.5 per cent.

However, pay-per-click (PPC) advertisements were predicted to fall by one per cent during 2007 due to concerns over click fraud.

Around 49 of the advertisers questioned said they have already reduced, or plan to reduce, their spending on PPC during 2007, an increase from 37 per cent during a similar survey at the beginning of last year.

Those surveyed also claimed internet advertising was effective in branding their products.

Meanwhile, the Bellwether Report released by the Institute of Practitioners in Advertising (IPA), claimed that over the past three months, money spent on the British online advertising has seen its sharpest rise since the first quarter of 2001.