Online Revenues To Surpass Radio By 2007, Says IAB
The UK’s Internet Advertising Bureau (IAB) is now predicting that online’s share of total advertising will reach 4% by autumn 2007. This revised target comes after the original 2% goal set for autumn 2004 was surpassed twelve months early.
This H1 growth rate of 85% has prompted that IAB to revise its outlook. The body now believes that online will be larger than radio, in advertising revenue terms, within the next three years. It forecasts online spend to reach £600 million by 2007 – a faster rate of growth than any other medium.
“Up-weighted acceleration programmes that cover research, marketing, education, standards and public affairs will drive future growth of the medium,” says the IAB.
Recent forecasts from Initiative Media predict that internet adspend will rise by 46.2% this year to £361 million. Radio is forecast to grow by 6.5% to £543 million, as shown.
| UK Advertising Trends By Medium | ||||||
| 2002 | 2003 | 2004 | ||||
| Spend (£000) | Growth (%) | Spend (£000) | Growth (%) | Spend (£000) | Growth (%) | |
| TV | 3,722,444 | 4.9 | 3,744,883 | 0.6 | 3,851,904 | 2.9 |
| Terrestrial | 3,087,620 | 2.2 | 3,018,648 | -2.2 | 3,055,991 | 1.2 |
| Satellite/cable | 634,824 | 19.9 | 726,235 | 14.4 | 795,913 | 9.6 |
| Radio | 491,000 | 1.0 | 510,000 | 3.9 | 543,000 | 6.5 |
| Press | 3,024,000 | 1.0 | 3,064,000 | 1.3 | 3,122,000 | 1.9 |
| Newspapers | 2,239,000 | 1.1 | 2,263,000 | 1.1 | 2,297,000 | 1.5 |
| Magazines | 785,000 | 0.8 | 801,000 | 2.0 | 825,000 | 3.0 |
| Outdoor | 690,100 | 1.9 | 745,900 | 8.1 | 779,500 | 4.5 |
| Cinema | 153,800 | 9.6 | 147,000 | -4.4 | 160,000 | 8.8 |
| Internet | 197,000 | 18.7 | 247,000 | 25.4 | 361,000 | 46.2 |
| Total | 8,278,344 | 3.3 | 8,458,783 | 2.2 | 8,817,404 | 4.2 |
| Source: Initiative Media, February 2004 | ||||||
