The troubled online advertising market has received a boost with the news that internet advertising has overtaken cinema advertising in the UK for the first time.

The value of online advertising surged by more than 200% last year according to figures compiled by PriceWaterhouseCoopers for the Internet Advertising Bureau.

Despite a slowdown in growth towards the end of 2000, online advertising was worth £154.7m in 2000. This compares with the £128m spent in cinemas estimated by the Cinema Advertising Association.

Spending on online advertising in 1999 was just £51m, according to the IAB.

"Clearly internet advertising continued to race ahead," said Danny Meadows-Klue, the chairman of IAB UK.

"These growth rates are unparalleled in traditional media."

Consumer product and media brands were among the biggest web advertisers, according to the IAB. The organisation also estimates that 89% of revenues went to the top 10 players.