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Monday, April 3, 2006

Online Adspend Surges in the UK

Posted by @ 7:08 pm

Online advertising is driving the growth in the UK advertising market, according to recent data released by the UK Internet Advertising Bureau (IAB) along with PricewaterhouseCoopers.

£1.4 billion ($2.5 billion) was spent on online advertising in the UK in 2005, a mammoth increase of 65.6 percent on 2004 figures.

While advertising sales across other forms of media dropped by almost $360 million in 2005, the overall increase of 2.5 percent in advertising expenditure across the UK was largely a result of the surge in online advertising.

Online advertising now accounts for almost eight percent of the market share, and is experiencing faster growth than any other advertising medium in the UK. It is anticipated that if this growth continues we can expect to see online advertising surpass national press advertising by the end of this year.

2005 UK Advertising Market Share

Advertising Medium Market Share (%)
TV 23.5
Press – Display 21.2
Press – Classified 17.8
Direct Mail 13.6
Internet 7.8
Directories 6.4
Outdoor 5.1
Radio 3.5
Cinema 0.9

Source: IAB PwC adspend study, March 2006

Search advertising spending increased by 79 percent in 2005 (£768.3 million was spent), accounting for 56.2 percent of the online advertising market share, while display advertising and classifieds also continue to show positive growth.

2005 UK Online Adspend

Online Advertising Format Spending (£ in millions) Market Share (%)
Search Advertising 768.3 56.2
Display Advertising 335.9 24.6
Classifieds 262.2 19.2
Total £1366.4 billion 100

Source:IAB PwC adspend study, March 2006

Rene LeMerle Rene is the marketing manager of - a global search engine marketing company. He also leads the marketing for - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile

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