Advertisers looking to increase their presence on the internet could be in line for a boost as ten online advertising networks have formed a British branch of the AdECN consortium.

The first-ever exchange for online display advertising, AdECN will allow members to buy and sell advertising space on clients' websites in a similar way to the stock market.

Head of research at e-Consultancy.com, Linus Gregoriadis, said: "The advertising spend online with UK ad networks grew tremendously in 2006 because of increased recognition that they give media buyers the chance to reach millions of users through a single point of sale."

Under the exchange, whenever a visitor goes to a website an automated auction is held among the advertisers interested for that ad impression, with the highest bidder then having their advertisement displayed.

Members will also be able to specify the amount their clients wish to pay for online campaigns and can make bids using a cost-per-click or cost-per-action basis.

As a result AdECN aims to help advertisers become more efficient in targeting internet users.

Mr Gregoriadis claimed the move would be an "exciting development" for the online advertising sector.

According to the recent Institute of Practitioners in Advertising (IPA) Bellwether Report, online marketing spend will increase over the coming year.

Internet ad spend is now thought to account for five per cent of total marketing budgets at UK firms.