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27 March 2007
Internet advertising hits £2 billion
It's official! Internet advertising expenditure hit £2 billion in 2006, growing by a staggering 41% as marketers continued to shift their budgets online.
Online advertising now has an 11.4% share of the total advertising market, having overtaken both radio and national newspapers (10.9%). This shift reflects a marked change in consumer behaviour with internet users choosing to spend more of their media time online.
The continued growth in Internet advertising appears to have come at the expense of combined traditional media which fell by £466.1 million year-on-year, a 2.9% decline. However, with the increase in online advertising spend, the entire market still grew by 1.1%.
The growth of paid search advertising outperformed all other ad formats, increasing to £1.2 billion, a massive 57.8% share of total internet advertising expenditure, and proving yet again that advertisers are looking for measurable returns from their advertising spend.
The internet is proving to be a hugely popular mass medium which allows consumers to interact and engage with advertisers on their own terms, in their own time, and in a highly targeted fashion. It is for this reason that online advertising spend will continue to outperform the wider advertising market.
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