Internet advertising has now overtaken TV advertising in the UK

According to an online advertising expenditure study by the Internet Advertising Bureau (IAB) in the UK – the internet has now overtaken TV advertising to become the UK’s single biggest advertising medium.

UK’s Online advertising expenditure grew 4.6% to £1.75 billion in the first half of 2009, overtaking TV for the first time. IAB figures show ad expenditure online up £82m to record market share of 23.5%.

The IAB has declared the UK as being the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as UK advertisers follow their audiences online and look to the internet for even more measureable and accountable methods.

Search, classifieds and online display

• Paid-for search increased by 6.8% increase from H1 2008 to H1 2009
• Online classifieds grew by 10.6% to £385m – or 22% of all online ad spend 
• Online display was down 5.2% year on year to £316.5m, with an 18.1% share of all online advertising revenues

Sectors leading the way

• Technology is the biggest spender, accounting for 19.1% of the market
• Telecoms 13.3% rising from 9.7% the previous year
• Finance 13.2% up from 11.9%
• Entertainment and Media was fourth with 11.8%
• Consumer Goods saw significant growth up from 6.2% in H1 2008 to 8.1% in 2009

Guy Phillipson, chief executive of the Internet Advertising Bureau, said: “Internet advertising has beaten all expectations to achieve growth in the most challenging market conditions. Online display has performed notably well against its peers in TV, print and radio despite more than £1.5 billion being wiped off the advertising industry. We have a rollercoaster of a year ahead but even in tough economic conditions marketers still recognise the value, accountability and measurability of online advertising.”

The key drivers for growth

• 70% of online advertisers and their agencies work with three online advertising networks or more
• 46% of online advertisers say they are working with more ad networks than a year ago
• 31% of online display advertising budget is believed to be spent on online advertising networks
• 195% growth in rich media, pre and post roll online video advertising
• 92% of people have a broadband speed on over 2MB
• 56% of home broadband users now have wireless broadband driving audiences online

Will Australian advertisers follow?

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