Quarter of UK ad spend goes into digital

About £1 in every £4 spent by UK advertisers last year was spent on digital ads, according to a report.

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The total internet advertising market grew 12.8% to a record £4.1bn, according to the Internet Advertising Bureau and PwC’s biannual advertising spend study.

Spend on social media ads increased by 200% in 2010, boosting the online display market by 27.5% on a like-for-like basis to another record £945m. Social networking sites now account for a quarter of the time spent online in the UK.

The availability of faster broadband in homes has driven video advertising, which grew 91% year on year to £54m.

IAB chief executive officer Guy Phillipson says/ “The power of online to build brands is clearly reflected in the spectacular growth of display, thanks to the popularity of social media and video formats.”

Mobile advertising also increased by 116% year on year to £83m, up from 32% in 2009.

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