UK Online Advertising Spend Beats All Records
The Interactive Advertising Bureau (IAB) and Pricewaterhouse Coopers (PWC) have revealed that UK online advertising in 2003 beat all records as spending reached more than £350 million, pushing its market share of total advertising revenue to 2.5%.
The official figures published today show that the online advertising industry grew at a staggering rate of 80% year-on-year to reach £353.6 million for the 12 month period to 31 December 2003, up from £196.7 million in 2002.
Record levels were also recorded every quarter says the report, with advertising spend in the first half of 2003 reaching £151.6 million. Strong growth continued during the second half of the year, pushing total spend to £202.1 million to reach a market share of 2.5% across the six months.
The research, which measures the industry based on revenues reported by leading online media owners shows, when compared with other media such as radio, online is rising fast. The online market share is now two-thirds the size of radio, which reached 3.8% during 2003.
Paul Pilkington, director at PWC said: “Yet again online advertising has reported strong, consistent, sold growth at a rate which is almost linear. Its year-on-year percentage growth rate vastly outstrips any other media channel.”
The industry is now well on track to beat its own target of doubling in size every three years. Its overall aim is to continue increasing its share of advertising budgets to eventually overtake radio by 2007, says the report.
A number of key drivers are behind the rapid increase, including marketers realising that consumers have moved to the internet which is driving a strong consistent audience growth.
In a separate report, PWC said that although the internet is currently the smallest of the six advertising mediums it tracks, it will remain the fastest growing and worldwide is expected to reach $18.9 billion by 2008.
IAB: 020 7886 8282 www.iabuk.net
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