Speaking at the inaugural Auto Trader Click Awards, Guy Phillipson, the chief executive of trade body the Internet Advertising Bureau, said the internet was now second only to television in terms of most consumers' favourite media.

Philillipson said there was a shift in advertising spend away from traditional to online media and the automotive sector was a significant beneficiary.

“You don't go online to buy a packet of crisps but you do go on to buy a car,” he said. “It's no wonder advertisers have been switching their budgets online over the last three years.” According to the IAB's research, a total of £2bn was spent on online advertising in 2006, a leap of 41 per cent over 2005. This compares with £4bn spent on TV advertising.

The trade body also said online spend accounts for 12.4 per cent of marketing budgets in the UK – the biggest share of any international market. “The good news for the car sector is that 12.5 per cent of all UK online spend is from automotive companies,” Phillipson added. He said new generation automotive websites, with greater interaction, were proving popular with users and had brand engagement rating ahead of TV, press, radio and outdoor advertising. “We are web savvy in the UK so you can't afford to let down customers. Video streaming and web TV is a gift for the car industry. There are more opportunities to build brands on the media platform where car purchase decisions are made,” he said. Phillipson predicted web advertising will overtake TV advertising to become the biggest single medium in the UK by 2010.