Online share of UK ad market now twice global average

By Danielle Long, campaignlive.co.uk, Friday, 30 March 2007 12:00AM

Online advertising spend has broken the £2 billion mark, with the sector securing 11.4 per cent of advertising revenue in the UK last year.

Online outpaced market forecasts with a 41.2 per cent growth year on year, according to new Internet Advertising Bureau figures.

The sector has overtaken national newspapers, and is now just over half the size of the TV advertising market.

Online's share of the advertising market in the UK is now twice the global average, which ZenithOptimedia reports as 5.8 per cent.

Guy Phillipson, the chief executive of the IAB, said that the sector's performance was driven by excellent infrastructures in the UK, increases in high-speed broadband take- up and the popularity of user-generated content.

He said: "The internet is a hugely popular mass medium now, and advertisers are continuing to switch more of their budgets online.

"The UK market is absolutely blazing a trail for the globe, so all eyes are on us."

Search is continuing to drive the medium, increasing 52 per cent to £1.2 billion of total online advertising spend, or a 57.8 per cent share. Phillipson revealed that while the growth in search was down on previous years, the sector was still demonstrating some healthy growth and was increasing off a "much higher base".

An increase in rich media video formats drove display advertising, which increased 35 per cent on the previous year to total £453.7 million.

In the meantime, online classifieds continued to take revenues from offline, with a 45 per cent growth to take an 18.8 per cent share of the market with £379 million.

Recruitment, finance and technology continue to be the best-performing categories.

These results come from figures in the biannual online advertising report, which is carried out by the IAB with PricewaterhouseCoopers and the World Advertising Research Centre.

This article was first published on campaignlive.co.uk

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