Updated every two weeks, the creative will reflect the high street chain’s continually updated product ranges and promote its latest special offers and increase sales.

The performance-based banner campaign will run on Advertising.com’s standard cost-per-acquisition (CPA) model and aims to deliver the retailer 10 times its return on investment.

Brendan Condon, managing director of Advertising.com International, said: “With increasing numbers of consumers researching products and making purchases via the web, online advertising is crucial to the success of retailers.

“It’s great to see a heritage brand like Laura Ashley investing in a strong internet strategy.”

It was reported yesterday that internet advertising spend grew by 38 per cent year-on-year to £2.8 billion in 2007 and is set to overtake television spend by the end of 2009, according to research carried out by the Internet Advertising Bureau (IAB). 

Gail Cayuela, e-commerce manager at Laura Ashley, added: “Advertising.com is a great platform for the brand, providing us with the perfect environment to keep our customers updated about our fresh offerings.”

The move comes after the fashion and homeware chain raised its stake in flagging menswear chain Moss Bros for the fourth time this year at the beginning of April.

Laura Ashley now holds a stake of 6.21 per cent, after buying a further 240,000 shares at 46.2 pence through its Bagleys Investments subsidiary.