Swedish car maker Volvo is to capitalise on the growing popularity of 'palmtop' hand-held computers in Australia with its advertising campaign for the new S60 model range.

The company will become the first car company to feature advertisements on Palm Pilot hand-held organisers and computers. Volvo will also advertise on the internet broadband medium, using Telstra and Optus sites, enabling users to go directly to an animated movie-style promotion of the new car.

The AvantGo newsletter, downloaded each day by approximately 22,000 Palm users across the country, will run the promotions as banner advertisements.

Volvo said palmtop use in Australia was steadily growing with users able to order a brochure or arrange a test drive via e-mail.

"Broadband technology is a new internet connection method, powered by cable rather than modem," the company said. "The result is a speedier connection time."

Volvo hopes the S60 launch in Australia will boost sales after a dip of around 400 units to 3,035 in 2000.