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02 October 2007
New record growth figures for UK internet advertising
Internet advertising growth continues apace with the latest report from the Interactive Advertising Bureau (IAB) who revealed an above-expected figure of 41.3% year-on-year growth for the first half of 2007.
Moreover, their overall findings point to online advertising expenditure reaching a record-high of £2.75 billion by the end of the year.
This growth figure takes the market share for online advertising to a significant 14.7%.
In the first 6 months of the year the total UK advertising market experienced 3.1% growth to £9.1 billion – but this was due to the strong growth in online – without which overall UK media expenditure would have fallen.
Online remains the fastest-growing advertising medium. In fact the latest figures reveal that online has at last overtaken the direct mail sector, which now has a market share of 11.8%.
Key findings
- Classified advertising growth of 72% year-on-year to £277.7 million, with a 20.8% share of all internet advertising spend.
- Display advertising (banners, skyscrapers, rich media formats) rose 33% to £287 million, with a share of 21.5%.
- Paid search growth was 44% up year-on-year to £762.3 million, with a share of 57.1%.
Key insights
The continued growth in paid search is undoubtedly due to the fact that at least half of all e-commerce transactions arise out of search – worth £32 billion in 2006.
In July this year users carried out 1.4 billion search queries with over 80% resulting in a click through to a website.
Marketing budgets are increasingly shifting online, where advertisers recognise the opportunities to build brands, sell their products and create competitive advantage.
The results of the biannual internet advertising spend study were commissioned by the IAB, the UK online advertising trade body, in association with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC).
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