A new report from eMarketer predicts that search advertising will claim 60% of online ad spending in the UK for at least the next few years.
Search is set to become more and more important, according to eMarketer. In the UK, search advertising has always taken a higher share of spending compared with other formats than it does in the US.
UK companies are forecast to spend £2.75 billion on search engine marketing in 2008, up 24% year on year, according to recent research from E-consultancy (see UK Companies To Spend £2.75bn This Year On Search Engine Marketing).
This year’s £2.75 billion spend is estimated to include £2.42 billion on paid search – a 23% increase on 2007.
| UK Online Advertising Spending, by format, 2008 (millions of £) |
| Search |
£2,014.0 |
| Display |
£704.8 |
| Classifieds |
£620.9 |
| Other |
£16.8 |
| Total |
£3,356.4 |
| Note: Display includes banners, skyscrapers and rich media (including video), search includes paid listings, contextual text links and paid inclusion; other includes sponsorships, referrals (lead generation) and e-mail (embedded ads only); excludes mobile ad spending |
| Source: eMarketer |
“Now that video and other rich media are becoming the norm, banner-type display ads are bound to shrink further,” said Karin von Abrams, senior analyst at eMarketer.
Even though Yahoo!’s new partnership deals include display ads on the social networking site Bebo, Yahoo! will have a difficult time taking on Google and its inexorable rise, said eMarketer. “Being better at display isn’t going to do the trick,” von Abrams added.
In June, Google search properties accounted for 87.34% of all UK searches, up 10% year on year, according to research firm Hitwise (see Google Accounted For 87.4% Of UK Searches In June).
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