UK Internet Ad Spend Up, Follows Aussie Experience

Internet advertising spend AustraliaSpending on internet advertising in Britain grew 10 percent during the first half of this year, due to a boom in ads around online video and social media sites, reported Reuters today,  lifting the medium to a record UK market share of 24.3 percent.

According to the biannual report from the Internet Advertising Bureau (IAB), the return to double-digit growth for the internet mirrored the general recovery of the entire ad sector.

The 10 percent growth to nearly 2 billion British pounds compared with a growth rate of 4.6 percent in the first half of 2009.

Spending on online display adverts was up 6.4 percent, taking a 19.3 percent share of the medium.

Away from display ads, paid search marketing continued to grow strongly, with an increase of 8.9 percent to a market share of 59.9 percent. Classified advertising, which was hit during the economic downturn, was up 11.4 percent.

In Australia, advertising expenditure rose 6.8 per cent in the first six months of 2010, according to Starcom MediaVest Group’s half-year update to its annual Media Futures survey that was released recently.

The result was better than the 5.3 per cent increase tipped at the start of the year.

Starcom’s survey found that 45 per cent of national advertisers experienced a year-on-year increase in expenditure during the first half of calendar 2010, compared with the prior corresponding period.

Free-to-air television had taken the biggest share of the increased spending, with about six in 10 advertisers “significantly” increasing their television budgets although almost six in 10 advertisers had significantly reduced their spending in newspapers.

Roughly half of those surveyed said they had significantly increased their spending online, including search and display advertising.

In a research note dated September 7, UBS analyst Richard Eary said he expected total advertising spending to increase by 8.5 per cent in the second half of calendar 2010.



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