CAMPAIGN-I: Internet advertising revenue beats cinema

UK internet advertising revenue trebled last year and surpassed

cinema advertising as a medium for the first time.

Internet ad revenue rose to pounds 154.7 million in 2000, pounds 26

million above cinema adspend, according to the latest figures from

PricewaterhouseCoopers, produced for the Internet Advertising


Despite pessimism surrounding new media, the revenue total in 2000

increased by 203 per cent on 1999.

The increase in internet adspend last year was greater than the previous

year. In 1999 the total online ad revenue was pounds 51 million, an

increase of 163 per cent on 1998, when the total was pounds 19.4


The growth in online adspend slowed in the final quarter of last year,

despite the Christmas season. The increase in ad revenue between the

second and third quarters was 213 per cent, but dipped to 135 per cent

between the third and fourth quarters.

The top ten publishers held on to 89 per cent of the total online ad


Banner advertising remains the most popular form of online marketing,

commanding 81 per cent of spend.

The media, government, leisure, entertainment and financial services

sectors increased online adspend by the most, while the travel,

telecommunications, automotive and consumer product sectors spent


Paul Pilkington, a consultant at PWC who oversaw the research, said:

'The underlying growth of internet advertising in the UK has been strong

enough for it to weather out the contractions being experienced in the

wider advertising market. It was the only advertising sector which grew

continually in 2000, including offline direct mail and classified


Internet revenue year on year pounds m

Year 1999 2000

Q1 8.4 27.5

Q2 8.9 35.9

Q3 12.7 41.9

Q4 21.0 49.4

Total 51.0 154.7


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