eMarketer is reporting that the total UK online advertising expenditure in 2005 shot up by 65% from 2004. It says: “(online advertising) surpassed all initial expectations in 2005, reaching £1.4 billion ($2.5 billion), a 65.6% increase on 2004. This represents close to 8% of all UK advertising spending in 2005.”
It goes as far as to say that with a 7.8% market share, the Internet is now just as much a part of UK mainstream advertising as the newspapers. Not sure about that one? Anyone?
“In fact, if online advertising in the UK stays on track, the UK Internet Advertising Bureau (IAB) estimates that it will overtake national press advertising by the end of this year.
“A recent article in The Times quoted Paul Pilkington, a director at PricewaterhouseCoopers, as saying that, far from slowing down, online advertising is likely to surpass £2 billion ($3.6 billion) in 2006.”

Although advertising across all platforms fell by nearly £200 million in 2005, this large increase online pushed total advertising spend up 2.5% from 2004.
Search advertising saw the highest increase:

I wonder what the stats show for this year?

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PR Monkey
The Advertising Association publlishes a wider industry breakdown here: http://www.adassoc.org.uk/News_Release_170306.pdf