According to research released by Thomson Intermedia spending on display advertising witnessed growth of nine per cent in the 12-month period leading up to March 31st.
Chief executive of the firm Sarah Jane Thomson said: "Brand advertisers, who have struggled [the] most lately, are beginning to realise the internet's potential as more consumers spend more time online and convergence of technologies removes barriers to doing business as usual."
She added that an increasing number of brand advertisers are looking to hold a "dialogue" with their audience.
Meanwhile, senior eMarketer analyst Karin von Abrams claimed search-based advertising is witnessing faster growth than display marketing.
However, she claimed that marketers "are still struggling to exploit the full power of the internet and the relation of online to other media".
Earlier this week, Lord Borrie, chairman of the Advertising Standards Authority, warned that the standard of online marketing needs to improve.
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