IAB figures show big increase in online spend

Britain’s marketers spent £266.8m on online advertising in the first half of 2004, a 76 per cent increase on the same period a year earlier. Perhaps more importantly, online advertising is rapidly catching up radio, with online now accounting for 3.2 per cent of all UK ad spend, compared to radio’s 3.7 per cent, according to the Interactive Advertising Bureau and PricewaterhouseCoopers. By comparison, total advertising spend in the UK rose by just 5.7 per cent to £3.7bn.

The figures suggest that the total spend on online advertising this year will be well over £500m.

Interactive Advertising Bureau UK chief executive Danny Meadows-Klue points out that one of the IAB’s key targets when it was set up in 1996 was for online advertising to overtake radio by the end of 2007.

He says: “It now looks as if we’ll achieve that objective by the end of this year, three years early. We’re charting a fundamental shift in the way the advertising community behaves, and there’s no going back.”

Meadows-Klue believes that growth continues to be driven by the explosion in search-engine marketing, but adds that there has also been significant growth in brand-building campaigns, as creative directors better understand how to use the online medium.

Studies conducted by the IAB both in the UK and US suggest that the optimum spend on online in an integrated campaign should be between ten per cent and 20 per cent of the total media budget – at present, most UK marketers are spending a maximum of five per cent on online.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here