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UK internet advertising spend grows 13.5%

October 5th, 2011 by Lloyd Gofton

The Internet Advertising Bureau’s (IAB) released its latest half-yearly update today, which shows that the UK internet advertising market is still buoyant, even in the face of the global economic slowdown, as the sector has achieved a 13.5% year-on-year growth.

The IAB figures show £2.26bn was spent on all forms of internet advertising in the first six months of the year, compared with a growth rate of about 1.4% across traditional media such as TV, newspapers and radio. This continues the growth trend over the last few years that has seen 11% growth in internet advertising in the same period last year and 4.6% in the first half of 2009.

Media growth year on year

The IAB attributed this growth to continued spending from fast-moving consumer goods companies, (FMCG) such as Unilever and P&G, citing digital display and online video advertising as the key growth sectors.

The report also put online spend ahead of TV for the first time since 2009, albeit marginally, with digital accounting for 27% of all ad spend and TV 26%.

Breaking down the online figures: Online display advertising accounted for almost a quarter of all digital spend (£510m), with a year-on-year growth rate of 18.5%, with Facebook likely to account for a large percentage of this.

Online video advertising also continued to evolve, doubling in size to £45m, but paid search still dominates, and grew 12.6% to £1.3bn, or a 58% share, with online classifieds growing 3% to £385m.

In terms of vertical categories, it’s a fairly even split, with finance remaining the biggest investor, accounting for 16% of all spend, closely followed by FMCGs on 15%, entertainment and media brands on 12% and travel and transport on 10%.

In the U.S online ad revenues have also grown by an impressive 23% year-on-year reaching almost $15 Billion in the first six months of the year. On the other side of the Atlantic almost half of revenue contributions come from search (49%), up by 27%, where as display advertising accounted for 37%.

For further information, see:

IAB

The Guardian

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