UK advertisers are spending £33 per head of population on online ads annually, more than twice the combined figure for Italy, France and Germany.
UK web advertising now represents 14 per cent of revenue for the sector, having risen above magazine activity for the first time. More is spent on internet adverts than the combined market for outdoor, cinema and radio advertising.
British broadband uptake also continues to rise, according to regulator Ofcom. By the end of 2006, half of all UK homes had high-speed connections, putting the country ahead of the US for the first time.
"Convergence, bundling and the move to digital communications is a powerful global phenomenon," said Ed Richards, Ofcom chief executive.
"Itis important to understand international comparisons so Ofcom can develop better policies to serve the interests of consumers and citizens in the UK."
The findings have been published in the regulator's International Communications Market report for 2007, which looks at trends in 12 countries across Europe, America and Asia.
The full study can be read here.