Online ad spend to exceed 2bn as figures jump 40%

Online advertising should break the 2bn barrier in 2006, according to
Guy Phillipson, chief executive of the Internet Advertising Bureau UK,
taking it well ahead of national press and closing the gap on TV.

Phillipson says: “We can see online overt…

Online advertising should break the 2bn barrier in 2006, according to Guy Phillipson, chief executive of the Internet Advertising Bureau UK, taking it well ahead of national press and closing the gap on TV.

Phillipson says: “We can see online overtaking TV in terms of share of total spend before the end of the decade.”

UK marketers spent 917m on online advertising in the first half of 2006, an increase of 40% over the previous year. That equates to a 10.5% share of total UK ad spend. By comparison, TV spend fell by 1.3% to 1.98bn to take a 23% market share. National newspaper advertising took 11.4%.

The figures come from the latest bi-annual survey of online ad spend, conducted by the IAB, PricewaterhouseCoopers and the World Advertising Research Centre (WARC).

But the 40% growth recorded in the first half of 2006 suggests that the rush into online may be slowing down, albeit gradually – six months ago, the annual growth rate was 66%.

Phillipson says: “The rate of growth may be down, but from a higher base – we’ve grown at more than 60% for three years running.”

The internet is now double the size of outdoor (5.1%), double the size of consumer magazines (4.6%) and three times the size of radio advertising (3.4%).

The only online advertising medium to record a fall in value was the so-called interruptive format – including “pop up” ads, which have attracted much consumer criticism – which declined by 9% to 6.8m, just 0.7% of all online advertising expenditure.

According to figures from YouGov, UK consumers spend an average of 23 hours a week online, a major driver in the switch of advertising budgets to the internet.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

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 will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

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

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

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