The UK online advertising market is currently the fastest-growing advertising medium in history, according to new figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC).
The total online advertising expenditure figure for all participating European member states in 2000 was £1.2 billion. This is an increase of more than 700% from a figure of £164 million in 1999, according to the report.
The UK, France and Germany lead the growth of online advertising across Europe. In the UK the Net now takes more than 1% of adspend, overtaking cinema in Q3 2000, according to the IAB. The online advertising market trebled in size between 1999 and 2000.
The data was compiled with actual expenditure figures from company accounts submitted to PWC from media owners and advertising agencies across Europe. Its authors claim it is the first definitive report of its kind, as it is based of verified expenditure figures rather than estimates.
Online has continued to grow faster than any other medium at any time in history, says the IAB. At the end of October a new study from the Bureau will reveal the exact performance of the online advertising industry in the first half of this year. “With the advertising economy under significant pressure and spend falling in most sectors the critical question will be how the first two quarters of 2001 compare to 2000,” it says.
Paul Pilkington, senior manager at PWC, said: “By the end of 2000, internet advertising had reached a size comparable with cinema advertising and in Europe the medium had shown continuous year on year growth despite adverse conditions in the wider advertising market.’