User-generated video websites are set to generate only a fraction of online advertising revenue this year, a new study claims.

According to research by Screen Digest, the likes of YouTube and MySpace will account for 15 per cent of America's total internet video advertising budget.

Senior analyst Arash Amel told the Financial Times: "No single user-generated [video] site has really instilled a business model yet."

He added: "The business model for user-generated sites has been 'build it and sell it and let someone else worry about the business model'".

However, Screen Digest added that advertising revenues from such websites is set to grow from $200 million (£101 million) last year to $875 million by 2010.

Meanwhile, research by MindShare Interaction claims Britain's online advertising market is growing at a rate of 40 per cent.

Accounting for 13.5 per cent of all expenditure in the sector, the country spends more on internet advertising than any other in the world.