Online advertising spend in the UK reached a new high of 2.8 billion in 2007, representing a year-on-year increase of 38%, according to a new report by the Internet Advertising Bureau, carried out in partnership with PricewaterhouseCoopers and the World Advertising Research Centre. Online adspend now accounts for 15.3% of the overall advertising market in the UK, up from 11.4% in 2006.
Online has gone from being the smallest advertising market sector in 2003 to the third largest last year, according to the report. By the end of 2009 online advertising is predicted to overtake TV advertising spend. The report also found that paid-for search advertising is maturing, as marketers become more sophisticated in their use of the medium. Search grew by 39% in 2007 to 1.6 billion, in line with overall growth, while its market share remained about the same at 57.6%.
Nicki Lynas, Senior Manager of Entertainment and Media Practice at PricewaterhouseCoopers, said: 2007 has been another success story for the internet. The strong growth in adspend reflects what has been an incredible year for internet advertising in the UK. Weve seen high profile acquisitions, mergers, a rise in social media and online video, and higher than ever usage of the internet. These ad spend figures are proof that internet advertising is big business, and its not going to stop growing anytime soon.