Online Ad Spend Surpasses TV In The UK

Up 40%

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Spending on online ads surpassed advertising on mainstream TV in the UK last year, increasing 40 percent to $5.3 billion and representing 19 percent of all advertising according to regulator Ofcom.

In its annual report Ofcom said Britons spent four times as much time on computers, averaging 24 minutes a day, and double as much time on mobile phones in 2007 as in 2002.

Average household spending on communication services declined slightly, due to bundled services and discount broadband prices. More consumers also switched providers to get better deals.

"We are spending more and more time with our communications devices but spending less on them," said Peter Phillips, partner, strategy and market development with Ofcom.

"Our devotion to watching, listening and staying in touch wherever and whenever we want shows no sign of diminishing and, with healthy competition, overall prices offer increasing value for money. That is what consumers demand."

Online advertising spending was dominated by paid search which accounted for $2.9 billion, with the remainder divided between display and classified ads.

Televsion advertising was flat at $6.5 billion, with mainstream channels accounting for $4.4 billion.

Among households with access to the Internet, 32 percent watched video clips on sites such as YouTube, or webcasts, up from 21 percent in 2006.

Broadband penetration reached 58 percent of British households, up from 52 percent the previsous year.

Online Ad Spend Surpasses TV In The UK
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