Online Advertising takes dominant share of overall budgets
Online advertising grows strongly
Advertising online is the key for television marketers
Wednesday, 5th October 2011 by Andy Carter
Advertising online has regained the dominant share of overall advertising as it took up a massive 27 per cent of the whole market in the first half of 2011.
The survey, carried out by the Internet Advertising Bureau (IAB) alongside PricewaterhouseCoopers and Warc, found that online display advertising was the best performer within the sector as internet consultants continue to add this to their managed emarketing strategy. Industry experts have stated that buyers in the fast-moving consumer goods (FMCG) market now believe video advertising, especially when merged with social media, is an extremely cost-effective way of reaching consumers.
Spending online video advertising increased doubled on levels in the first half of 2011 earlier. With a market up just 1.4 per cent year on year, to £8.27 billion between January and June, spending on internet advertising overall reached £2.26 billion, an increase of 13.5 per cent on the same period in 2010.
Television spending also rose 3.6 per cent to £2.16 billion or 26.1 per cent of the market, while newspaper and magazine display advertising dropped 5 per cent to £1.37 billion or 16.6 per cent. Press advertising such as classifieds fell 14.1 per cent to £627.6 million, accounting for 7.6 per cent of the market.
Of the total for the internet, search advertising remained the largest component, with 58 per cent of all online spending, the same level as last year. However, display advertising saw significant growth, increasing by 18.5 per cent in the period.
Guy Phillipson, chief executive of the IAB, said: “FMCG advertisers were relatively late to the party, but now firmly established as the second-highest spending category [after the financial services sector], they clearly have all the proof they need to invest in line with the medium 19s share, and enjoy healthy returns from cross-media campaigns.
“With direct response advertising also thriving in the current climate, online offers a potent combination for all marketers, and the indications are that double-digit growth will continue in the UK.”
June 2011 saw the UK 19s active online user base grow to 39.5 million, up from 38.4 million in June 2010
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