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Some of Europe's biggest Internet companies are to work together to promote the merits of online advertising.

AOL Europe, T-Online, Tiscali, Yahoo!, Lycos Europe and MSN are among a number of operators that have come together to form the European Interactive Advertising Association.

Based in London, it will try and persuade advertisers that the Net's not such a bad place to spend their cash despite the wobbly times of the last couple of years.

According to the FT, the IEAA is looking to see online advertising gain between 5 and 7 per cent of all European advertising spending by 2007, up from just 1 per cent at the moment.

Michael Kleindl, chief exec of European advertising network, Adlink, and the EIAA's first chairman, told the FT: "We believe we deserve a better place in the overall media mix, but as an industry we have not yet provided the tools used in traditional media." ®

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