Although UK online ad spend is forecast to post double-digit growth year on year, it is likely to fall as the economic downturn takes effect, according to a new report from PricewaterhouseCoopers.
Citing Advertising Association data, the report predicts that total UK online ad spend growth will slow to about 20% in 2008 – a slowdown of 18 percentage points compared with 38% growth in 2007.
Within online, display spend is the segment most vulnerable to the effects of the economic downturn due to its focus on brand advertising and limited measurability, said PwC. Display ad spend growth is expected to be below the online market average in the UK in 2008.
While online classified spend will be boosted by growth in the automotive and dating sectors, the forecast is mixed with PwC predicting an uncertain time for property and recruitment spend.
Search spend in the UK this year is expected to outperform overall online advertising spend, with PwC forecasting growth of around 30% in 2008.
Last week, online research firm eMarketer predicted that search advertising will claim 60% of online ad spending in the UK for at least the next few years (see Search Advertising To Claim 60% Of UK Online Adspend).
E-consultancy, meanwhile, forecast that UK companies will spend £2.75 billion on search engine marketing in 2008, up 24% year on year (see UK Companies To Spend £2.75bn This Year On Search Engine Marketing).
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