Online advertising - driving advertising spend
UK Internet advertising expenditure in 2006 notched up £2.016 billion, reaching out to the estmated 31 million people connected to the internet, representing a 41.2% surge in growth as marketers moved their budgets online.
Not only did this herald an increase in the internet’s share of all advertising revenues to 11.4%, up from 7.8% in 2005, it also led to an increase in the entire advertising spend by 1.1% . With almost all expenditure on traditional media in decline, the upward momentum of the internet reflects a new era in marketing communication and consumer behaviour, which is driven by high-speed broadband take-up and user-generated content.
- Spend on the internet overtook advertising in national newspapers, which last year recorded growth of 0.2% to £1.9 billion and a market share of 10.9%. In 2006, the internet was just over half the size of the TV advertising market, which experienced a fall of 4.7% to £3.9 billion.
- Advertising across all traditional media combined fell by £466.1 million year-on-year, a 2.9% decline. However, with the increase in online advertising spend, the entire market grew by 1.1%.
- In the second half of 2006, online advertising experienced its highest market share ever reported when expenditure topped £1.098 billion - a 12.4% share of total UK advertising.
- In 2006, online display advertising (including banners, skyscrapers and online sponsorships) rose 35% year-on-year to £453.7 million.
- The growth of paid-for search (sponsored listings that advertisers pay for when a consumer clicks through to their site) was sustained, increasing by 52% to £1.2 billion of total online ad spend or a 57.8% share.
- Online classified advertising was also up 45% to £379 million, a share of 18.8%. This is in contrast to traditional press classified advertising, which experienced a significant decrease of 7.8% year-on-year.
Other reads
Online advertising share overtakes newspapers (Guardian)
IAB/PwC UK online adspend figures 2006 (IAB UK Release)
UK Net Advertising Surpasses Print (WebProNews)
Web ad spend overtakes newspapers (BBC)
Filed under: Digital culture, Trends