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BizReport : Advertising : December 08, 2006
UK Out-Advertising U.S. Online
Online advertising grows year by year, but the fastest growth seems to have shifted away from the United States and into the United Kingdom. Online advertising in the UK is growing at about 40% per year.
According to Group M, owned by WPP Group, online ads are expected to account for roughly 14% of all advertising in the UK this year. That is more than twice the U.S. amount, and the highest rate in the world.
As recently as four years ago, however, Britain was behind the U.S. in online ad spending. Online ads in Britain will account for more than 10% of all ads; comparatively, online ads will only account for about 5% of U.S. advertising this year.
Why the sudden shift?
Britain has had a higher shift to broadband Internet access compared to the U.S. In addition, their media buyers are much quicker to experiment with ad platforms, while U.S. media buyers are more skeptical of new advertising mediums.
Television advertising seems to still be the choice of U.S. buyers. TV will bring in more than $72 billion in 2006 ad revenue, about ¼ of all advertising revenue. That is a figure that has held steady since 2000.
Tags: advertising forecast, UK
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