Although total online ad revenue only accounts for half a percent of total ad revenue for the year, Paul Pilkington, senior consultant at PWC, commented, "Although it is still quite a small category it is growing enormously. If it continues at the speed at which it is growing, revenue for the medium will have reached $150 million (£100 million) by 2000, which is bigger than cinema advertising."
Advertising spend on the internet during 1999 came to $76.4 million (£51 million), compared to $29 million (£19.4 million) for 1998. The biggest increases came during the latter half of the year.
Banner advertising is still the main online advertising currency and accounted for 73 percent of the full year's revenue, but sponsorship deals are gaining in popularity.
The technology companies are still amongst the biggest spenders in this advertising sector, and there has yet to be a huge shift online for more consumer-based companies. "They're holding back," said Pilkington. "Maybe they see the internet as having a different function -- they don't seem to see the internet as a brand building medium."