Internet Advertising Reaches Record Levels
The UK online advertising market continues to grow at a rapid rate and is now officially double the size of cinema, according to updated figures from the Interactive Advertising Bureau.
The update provides a breakdown of figures released by the IAB before Christmas, which revealed that online advertising spend topped £151 million in the first half of last year, giving the sector a record market share of 2%.
The IAB claims that expenditure records have been consistently broken every quarter over the past twelve months following a significant increase in the number of advertisers using online and a rise in the amount of time consumers spend using the internet.
The research shows that banners remain the most popular online format, closely followed by paid-for-search listings, which now account for 36% of the total market, up from just over 30% on the first half of the previous year.
All industry sectors experienced an increase in online advertising spend during the first half of 2003. However, the automotive sector saw a surge in growth and almost trebled its market share from 6% to 17%, as motoring brands discovered new creative design tools that bring television-style creatives to the internet (see New Video Commercial Launched For Online Advertisers).
Financial service marketers remain the internet’s largest enthusiasts and accounted for 30% of the sector’s total spend in the first half of last year. Consumer products generated around 13% of expenditure, followed by technology and travel both with 9%.
Commenting on the figures, Danny Meadows-Klue,chief executive of the IAB, said: “Online is being used by mainstream marketers to support every aspect of the marketing mix, with a powerful track record now proven for those building brands and generating response.”
He added: “The unstoppable growth in internet audiences and the ever-increasing role the net plays in each of our daily lives are powerful reasons why every business should be putting the web at the heart of their marketing plan.”
The growth of online advertising is set against a slightly lacklustre performance for other advertising sectors. The latest figures from the Advertising Association show that UK adspend remained virtually static in the the third quarter of 2003 to £3,376 million.
IAB: 020 8683 9557 www.iabuk.net
Recent New Media Stories from NewsLine Yahoo! Doubles Sales Operations With New Agency Team Government To Set New Targets For Broadband Britain UK Becomes A High Speed Haven For Internet Users
Subscribers can access ten years of media news and analysis in the Archive