Internet advertising set to become £1bn medium in 2005 |
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Tue, 04 Oct 2005 11:40
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LONDON: The online advertising medium is growing almost exactly as was predicted ten years ago. In UK alone, internet advertising spend is set to cross the £1bn mark in 2005 before the year ends, according to the Internet Advertising Bureau (IAB).
According to figures released by the IAB, advertising spend in the UK during the first half of 2005 rose 62 percent (compared to first half last year) to £490.8m. As was forecast last year, the media has now overtaken outdoor advertising. Its market share stood at 5.8 percent compared to 5.1 percent of outdoor media. It had already surpassed (more like gobbled up) radio’s market share last year as marketers reallocated budgets and diverted radio budget towards online advertising.
The IAB figures also reveal that the total revenue during the past six months more than equals the whole year’s advertising expenditure in 2003 i.e. £407.8 million. IAB’s chief executive Guy Phillipson said the medium’s growth had surpassed all expectations and now “looks certain to be a £1bn medium in 2005”.
Increased penetration of high-speed broadband was fuelling the scorching pace of this medium’s growth. Also evolving with the media were advertising agencies who were now better equipped to create better targeted and effective advertising on this medium. Most agencies felt they were getting their money’s worth from online advertising and they were seeing its real potential now.
Figures provided by another independent study show how marketers spent their clients’ money during the first quarter this year. About 44 percent of UK’s ad budget was spent on magazines and newspapers, 25 percent on television; online advertising accounted for just one fifth of TV advertising. Radio now attracts just 3.6 percent. The overall ad spend had also risen to £3.9 billion up 5.3 percent.
The medium has performed as impressively in the US where it had risen 26 percent to $5.8 billion during the first half of 2005.
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