Monday, October 17, 2005
UK Online Ad Spending Soars:
"Published: October 13, 2005
(After October 21, 2005, this article will only be available to eStat Database subscribers.)
The UK online ad sector topped radio last year and is overtaking the outdoor market this year.
According to the bi-annual advertising spend study issued by the UK Internet Advertising Bureau (UK IAB) and PricewaterhouseCoopers (PwC), Internet advertising expenditures in the UK for the first half of 2005 reached £490.8 million and will go over the £1 billion mark by the end of the year.
The study found that online revenues increased by 62.3% on a like-for-like basis when compared to the same period in 2004, far outstripping the 3% growth in overall UK advertising spending. Although television remains the largest single advertising medium in the UK, with expenditures of £4.7 billion last year, the total amount of online ad spending for just the first half of 2005 was higher than for the whole year of 2003, which was £407.8 million.
In addition, online advertising in the UK — having surpassed radio spending last year — has now also overtaken the market share of the outdoor advertising sector. For the first half of 2005, online represented a 5.8% share of the market compared to outdoor's 5.1%.
"These results have surpassed our expectations," said Guy Phillipson, chief executive of the IAB. "At the end of 2004 the IAB predicted online would overtake outdoor by mid 2006 and we've beaten this target. Now the internet looks certain to be a £1 billion medium in 2005."
When asked to identify the key drivers behind the online advertising growth, Mr. Phillipson pointed to broadband adoption and the resulting increased connection speeds. "Broadband is experiencing record take up this year, which has fuelled internet consumption and in turn attracted a greater share of advertisers' spend," he said.
Broadband take-up has more than doubled in the UK in the past twelve months, with over eight million homes now connected — outstripping dial-up. In fact, the UK is now ahead of the US in terms of percentage of households with broadband.
Other key drivers include:
*More Engaging Creativity — as marketers engage customers with video streaming, personalization, interactive formats and localized search to extend brand conversations.
*Overall Online Retail Boom — as retailers and manufacturers steadily invest more online in order to get closer to the point of purchase and influence what people buy and where they buy it.
As Mr. Phillipson said, "Marketers are recognizing the Internet's full potential and are actively diverting budgets into online advertising."
For more up-to-date information on this subject, read eMarketer's recent report, Ad Spending Trends: The Internet and Other Media."
"Published: October 13, 2005
(After October 21, 2005, this article will only be available to eStat Database subscribers.)
The UK online ad sector topped radio last year and is overtaking the outdoor market this year.
According to the bi-annual advertising spend study issued by the UK Internet Advertising Bureau (UK IAB) and PricewaterhouseCoopers (PwC), Internet advertising expenditures in the UK for the first half of 2005 reached £490.8 million and will go over the £1 billion mark by the end of the year.
The study found that online revenues increased by 62.3% on a like-for-like basis when compared to the same period in 2004, far outstripping the 3% growth in overall UK advertising spending. Although television remains the largest single advertising medium in the UK, with expenditures of £4.7 billion last year, the total amount of online ad spending for just the first half of 2005 was higher than for the whole year of 2003, which was £407.8 million.
In addition, online advertising in the UK — having surpassed radio spending last year — has now also overtaken the market share of the outdoor advertising sector. For the first half of 2005, online represented a 5.8% share of the market compared to outdoor's 5.1%.
"These results have surpassed our expectations," said Guy Phillipson, chief executive of the IAB. "At the end of 2004 the IAB predicted online would overtake outdoor by mid 2006 and we've beaten this target. Now the internet looks certain to be a £1 billion medium in 2005."
When asked to identify the key drivers behind the online advertising growth, Mr. Phillipson pointed to broadband adoption and the resulting increased connection speeds. "Broadband is experiencing record take up this year, which has fuelled internet consumption and in turn attracted a greater share of advertisers' spend," he said.
Broadband take-up has more than doubled in the UK in the past twelve months, with over eight million homes now connected — outstripping dial-up. In fact, the UK is now ahead of the US in terms of percentage of households with broadband.
Other key drivers include:
*More Engaging Creativity — as marketers engage customers with video streaming, personalization, interactive formats and localized search to extend brand conversations.
*Overall Online Retail Boom — as retailers and manufacturers steadily invest more online in order to get closer to the point of purchase and influence what people buy and where they buy it.
As Mr. Phillipson said, "Marketers are recognizing the Internet's full potential and are actively diverting budgets into online advertising."
For more up-to-date information on this subject, read eMarketer's recent report, Ad Spending Trends: The Internet and Other Media."
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