UK online ad spend rockets as banners continue to dominate

– Internet advertising spend in the UK continues to rocket, according to the latest figures from the Internet Advertising Bureau.

– Internet advertising spend in the UK continues to rocket, according to the latest figures from the Internet Advertising Bureau.

The research, compiled for the IAB by PricewaterhouseCoopers, of the first half of 1999 has revealed a massive revenue increase of 122 per cent from £7.9 million to £17.3 million.

The results of a like for like half-year comparison with 1998 show that revenue more than doubled in both quarters. Revenue in quarter one increased a substantial £5 million from £3.4 million, to £8.4 million.

Quarter two showed a substantial increase from £4.5 million to £8.9 million.

Contrary to certain industry opinion, much of the rise has been attributed to the increasing use of ad banners by advertisers. Banner ads account for 80 per cent of half year revenues, and continue to dominate display advertising.

Tom Bowman, chair of Market Statistics, commented: "These statistics reinforce the power of banner advertising and silence any claims that this medium is no longer the lynchpin of internet advertising spend."

Publishers have increased their share of the market too, rising to account for 88 per cent of advertising revenues for quarters one and two.

Richard Hartley, a partner of PricewaterhouseCoopers, noted: "Larger sites are now making increasing use of personalisation and sophisticated ad serving technology...the net result is an increase in their appeal to advertisers with different needs. Smaller sites need to think carefully about how they can differentiate themselves and their user community, and build the increasing level of trust now required from advertisers."


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