IAB Online Adspend Factsheet - First half 2006
by 1ère Position, Tuesday 14 November 2006, 18:08 :: European SEM news :: #20 :: rss
The latest results of the UK's industry tracking study, carried out by IAB UK with their partners PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC), have revealed that in just six months online advertising expenditure has reached over €1.3 billion in the UK. In a depressed advertising market the internet continues to grow with 40.3% like-for-like annual growth for the first half of 2006. This takes the sector to a half year high of €1.34 billion (£917.2 million) - compared to €920.5 million (£630.5 million) a year ago - and a market share of 10.5%.
Online set to overtake national press by end of this year. Once again the internet is the fastest-growing advertising medium in the UK, commanding a market share of 10.5% for January to June 2006, up from 7.3% for the same period in 2005. This takes online advertising to within one percentage point of national press, which recorded an 11.4% share for the first half of 2006.
By comparison the internet is now double the size of outdoor (5.1%), double the size of consumer magazines (4.6%) and three times the size of radio advertising (3.4%). Online is also now half the size of the TV advertising market, which recorded a 22.7% market share following a decline of 1.3%.
TV, press, radio, and direct mail have all experienced declining revenues in the past six months (Based on figures from the Advertising Association). Online has buoyed the advertising market by contributing an additional £284 million to total UK advertising revenues, and looks set to overtake spending on national press advertising before the end of 2006.
All major online ad formats maintain healthy growth. Paid-for search was 57.7% up year-on-year to £531.3 million - a share of 57.9% of the online total. As the online audience increases (now 29.8 million individuals in the UK) so does the volume of search traffic and with 87% of consumers using search to find websites, advertisers have adopted the format not only as a direct response tool but to help build their brands and secure an online presence.
Online display advertising (including banners, skyscrapers and embedded formats) climbed 33.2% to £215.9 million and a 23.5% share of all online adspend, making it by far the fastest-growing display medium. Ten million households in the UK are now on broadband, and this is recognised by the marketing community as an opportunity to create engaging 'rich media' ads that engage consumers' attention.
While traditional press advertising expenditure fell year-on-year, online classified advertising grew 23.4% to £162.2 million, a share of 17.7% for the first half of 2006. Interruptive formats, including 'pop ups', declined by 9% to £6.8 million - the format is now worth just 0.7% of all online advertising expenditure.
For more information :
Download the full presentation of the results (PDF)
See the IAB UK website
Join the IAB Europe Online Advertising Research taskforce
Comments
No comment.
Add a comment
Comments are closed.