British travel companies spent more on internet advertising in 2006 than in the previous year, new research suggests.

According to a study by Travolution, Britain's top 20 travel brands increased their spend on online display campaigns by £14.6 million - a rise of over 50 per cent from £9.7 million spent in 2005.

However, the study does not include money spent on search marketing.

Thomson was reported to be leading growth in the sector as the tour operator invested £2.6 million into internet marketing techniques, a four-fold increase from the £600,000 it spent in the previous year.

Travolution added Thomson used a variety of online advertising techniques such as banners, buttons and skyscrapers to attract consumers.

Meanwhile, Hotels.com increased their internet advertising spend to £1.2 million.

The study reported that six out of the 20 travel brands reduced its online display budgets, with Virgin Holidays cutting spend by 25 per cent to £352,000.

Earlier this week, an industry expert claimed travel companies are set to focus on targeted online advertising as they attempt to encourage consumers into booking their holidays over the internet.

Worldspan vice president Graham Nichols stated firms could aim to attract specific users by targeting them with services and products they are likely to be interested in, reports Travel Mole.