Online Ad Spend In The UK To Surpass TVBy: Mike Sachoff - April 7, 2008
The Internet will surpass television as the largest advertising medium in Britain by the end of 2009, according to a report from the Internet Advertising Bureau (IAB), Pricewaterhouse Coopers and the World Advertising Research Centre.
The report says that Britain has the most developed online advertising market in the world and was worth $5.6 billion in 2007.
"With broadband speeds on the up and consumers spending more time on more sites, the outlook for online advertising is rosy — in fact we expect it to overtake TV in 2009 when it will become the UK’s biggest medium," IAB chief executive Guy Phillipson said.
The Internet was the biggest driver of overall advertising growth in 2007, with all of Britain experiencing 4.3 percent growth to $36.5 billion. Online ad spend had a market share of 15.3 percent an increase from 11.4 percent in 2006, but trailing display advertising at 19.9 percent and TV at 21.8 percent.
Display online advertising, including banners and video grew 31 percent while paid-for search marketing was "maturing, but not slowing" as marketers received a greater return on their investment through "key phrases" and accurate targeting.
Advertising spend on search increased 39 percent, in line with overall growth with $3.1 billion, while its market share remained about the same at almost 58 percent. Classified advertising showed 54 percent year-on-year growth.