eMarketer has cut its forecast for UK online ad spend, predicting that it will grow 7.2% in 2009, down from its May forecast of 17.2%.
The online research firm expects UK online ad spend to reach £3.34 billion in 2008 and £3.58 billion in 2009.
Karin von Abrams, eMarketer senior analyst and author of the new report, UK Online Ad Spending, said: “The good news is that even though advertising in traditional media is down sharply, online is bucking the trend, at least to an extent.
“Budgets are being trimmed, marketers will be less experimental and the focus will be on getting the best from proven strategies.
“Fortunately, many forms of online advertising, such as paid search and e-mail marketing, rank high in terms of accountability and return on investment.”
In 2012, digital growth will grow by 14.6% year on year, to just over £5 billion, according to eMarketer. The rate of growth will slow the following year, to 10.8%, with the UK digital media market worth £5.62 billion.
| UK online advertising spending, 2007-2013 (billions and % change) |
| |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| $ |
| Online ad spending |
$5.50 |
$6.15 |
$5.30 |
$6.11 |
$7.39 |
$8.77 |
$10.00 |
| % change |
47.8% |
11.7% |
-13.8% |
15.3% |
21.0% |
18.7% |
14.1% |
| £ |
| Online ad spending |
£2.75 |
£3.34 |
£3.58 |
£3.94 |
£4.43 |
£5.07 |
£5.62 |
| % change |
36.0% |
21.5% |
7.2% |
10.1% |
12.3% |
14.6% |
10.8% |
| Note: converted at average annual exchange rates (projected for future years) |
| Source: eMarketer |
According to a report in The Economist, Online advertising will continue to expand in the coming recession – just not as quickly as previously expected (see Online advertising will continue to expand in the recession).
The report found that online advertising is attractive to advertisers as it is making obsolete the distinction between above-the-line and below-the-line marketing spend by delivering the benefits of both.
A recent UK ad spend forecast from ZenithOptimedia predicted that online would grow 16.8% in 2009 (see UK ad spend forecast to fall 0.8% this year).
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