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Tuesday, April 4

Online Adspend Surges in the UK

Online advertising is driving the growth in the UK advertising market, according to recent data released by the UK Internet Advertising Bureau (IAB) along with PricewaterhouseCoopers.

Â£1.4 billion ($2.5 billion) was spent on online advertising in the UK in 2005, a mammoth increase of 65.6 percent on 2004 figures.

While advertising sales across other forms of media dropped by almost $360 million in 2005, the overall increase of 2.5 percent in advertising expenditure across the UK was largely a result of the surge in online advertising.

Online advertising now accounts for almost eight percent of the market share, and is experiencing faster growth than any other advertising medium in the UK. It is anticipated that if this growth continues we can expect to see online advertising surpass national press advertising by the end of this year.

2005 UK Advertising Market Share

Advertising Medium	Market Share (%)
TV	23.5
Press - Display	21.2
Press - Classified	17.8
Direct Mail	13.6
Internet	7.8
Directories	6.4
Outdoor	5.1
Radio	3.5
Cinema	0.9

Source: IAB PwC adspend study, March 2006
Search advertising spending increased by 79 percent in 2005 (Â£768.3 million was spent), accounting for 56.2 percent of the online advertising market share, while display advertising and classifieds also continue to show positive growth.

2005 UK Online Adspend

Online Advertising Format	Spending (Â£ in millions)	Market Share (%)
Search Advertising	768.3	56.2
Display Advertising	335.9	24.6
Classifieds	262.2	19.2
Total	Â£1366.4 billion	100

Source:IAB PwC adspend study, March 2006

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Online Adspend Surges in the UK

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