UK online adspend up 4.2% in 2009

UK internet advertising spend grew 4.2% in 2009 to hit £3.5 billion, with search reaching 2.15 billion, according to new figures from the IAB.

The bi-annual data from the IAB and PricewaterhouseCoopers LLP also shows that the second half of 2009 improved on H1, with online advertising spend increasing by £25.6 million to £1.78 billion between July and December, up from £1.76 billion in the first half.

Paid search was up 9.5% on a like-for-like basis to reach £2.15 billion last year, representing 60.7% of all online ad spend (59.3% in 2008).

However, online display advertising fell 4.4% to £709.3 million, or 20% of the online market.

Online video performed strongly within display, with spending up 140% year on year, with pre- and post-roll advertising generating £28.3 million. Affiliate marketing also saw healthy growth, said the IAB, up 38.2% to £72.6million.

Online classifieds were down 5.3% on a like-for-like basis to £677.4 million, from £715.2 million in 2008, accounting for 19.1% of all online adspend in 2009.

Guy Phillipson, chief executive officer of the IAB, said: “In 2009 the advertising industry was hit hard but online has proved itself a winning medium, capturing a greater share of marketing budgets.

“In the past year we’ve seen some real success stories as search passed the £2 billion mark, and online video advertising experienced spectacular growth. And with sectors such as Retail and Consumer Goods increasing their spending on the internet we can look forward to a healthier 2010.”