In a recent report published by the IAB, UK internet advertising agencies grew 21% year on yearfor the first two quarters of 2008. (Jan ? June). The figures, from theInternet Advertising Bureau (IAB) and PricewaterhouseCoopers, put the total UK online ad expenditure at ?1.7 billion for thisperiod. In the same period last year, online advertising spend was ?1.3 billionand the medium grew by 41.3% from ?917.2 million year-on-year with online?sshare growing to 15.3% for the whole of 2007, up from 11.4% for 2006.
This new figure takes internet advertising to a recordnew market share of 19%, slightly behind total press and TV ad revenues. Thetotal advertising market was ?8982.5 million, down 0.7% year-on-year, duringthe period January to June 2008. Without internet advertising growth the entireadvertising sector would have experienced a 4.6% fall. Online exceededexpectations to increase its market share by four points to 18.7%, only 0.6%behind total press display (19.3%) and 3% behind TV (21.7%).
All formats have experienced better than expectedgrowth with search marketing (Paid for search) leading the way by growing 28%year on year. Advertisers spend ?981 million in the first half of 2008, with itsmarket share marginally up to 58.3% of total online advertising (57.8% in firsthalf of 2007).
With the mayhem in the financial markets and globaluncertainty there is expected to be a major slow down in the UK economy over the next 12 months. This will have aknock on effect on the advertising industry with advertisers reducing spendprimarily on traditional and brand directed activities. However the prospectsfor online remain buoyant, as it's highly ROI driven and can be measured. Withcompanies looking at innovative and cost effective routes to generate businesssearch marketing (SEO and PPC) will increasing become part of the marketingstrategies for companies both big and small.
