The amount of money spent on online advertising in the UK during the first half of 2007 was up 41.3% year-on-year, taking the sector to a
half-year high of £1,334.3 million. This compares to £917.2 million last year, and means online now accounts for just under 15% of total UK ad spend. At this rate, it's predicted to reach a
potential new high of £2.75 billion by the end of 2007. The figures were released today in the
biannual internet advertising spend study commissioned
by the
Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
On the figures, IAB chief executive, Guy Phillipson, remarked: "The online market is developing at an astounding rate and once again
we see exceptional growth and a significant increase in market share.
90% of internet users are on broadband now and nearly 40% are using
wireless. We’re also seeing women and the over 50s spending far more
time online, which makes the internet a very attractive medium to a
broader set of advertisers."
More broadly, the
total UK advertising market grew by 3.1% during the first half of the
year to £9.1 billion. However, were it not for the strength of online spend, UK media
expenditure would have actually fallen by 1.9% (some £147 million). Interesting for issuers, maybe, is that for the first time
online ad spend has overtaken direct mail, which has a market share of 11.8%.Nicki Lynas, manager, entertainment and media practice, PwC, wrapped up: "The latest results for the first half of 2007 show that the UK's
internet advertising industry continues to strengthen. The growth
levels seen by the companies in the survey prove that advertisers are
increasing their spend online at a rate that shows no signs of
levelling out."