Online advertising spend rocketed by 76% in the first half of this year to just under £267 million, according to the latest figures from the Interactive Advertising Bureau.
The increase takes the medium’s share of overall UK adspend to an all time high of 3.2%, placing it well ahead of cinema and putting it on track to reach its goal of overtaking radio by 2007.
The latest figures value online advertising at £468.8 million in the twelve months to June 2004 and with a number of underlying drivers continuing to accelerate the market, the IAB is confident that total adspend for 2004 will top the half billion mark.
Internet advertising is playing a rapidly increasing role in the media mix and marketers spent more than £134 million on the sector during the second quarter alone, up by £2 million on the first three months of the year and the biggest single quarter of investment since records began in 1997.
The increasing amount of time spent online, along with improvements in creativity and the standardisation of advertising formats are some of the key factors behind the growth. There has also been something of a cultural shift in the marketing community which has led to more and more brands experimenting with interactive media.
Commenting on the figures, Danny Meadows-Klue, co-founder and chief executive of the IAB, said: “We’re charting a permanent shift in how the marketing process works. This is still firmly about integrated marketing, but as more brands tap into online, marketers are discovering its role in the media mix should be even greater. And the staggering pace of innovation means we’re only scratching the surface of what this marketing channel can really do.”
Fru Hazlitt, managing Director of Yahoo UK and Ireland, added: “Users have been saying for the last few years that this is a mainstream medium, now these results prove it. The internet is a serious advertising medium ready to compete on all levels with traditional media. It’s back and it’s here to stay.”
Automotive and financial service advertisers look set to continue to be the biggest online spenders. Both have significantly increased their investment in the medium over the last year and have been successful in exploiting the rapidly expanding range of new creative design tools.
It is also expected that a number of the UK’s biggest FMCG brand-owners, such as Proctor & Gamble, Lever Fabergé and Unilever, will divert some of their vast television spend into online, in an attempt to cut costs and achieve greater return on investment going forward.
Earlier this week the Interactive Advertising Bureau has published a new set of best practice guidelines to champion the needs of internet users by monitoring the way in which advertisers use pop-ups and similar rich media ads. The new guidelines will give users control of sound and video formats, ensuring close buttons are clearly displayed and easy to use.
Related Links
