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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.
| 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 |
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.
| 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 |
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