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BizReport : Research archives : March 28, 2007

U.K. broadband penetration and online ad spend on the up

Cheap, widely available broadband connectivity and spending power are fueling internet usage in the U.K., which now boasts the fifth-largest broadband population in the world.

by Helen Leggatt

Back in May, 2006, Informa put the U.K. as the most digital country in Western Europe. This week, eMarketer and the IAB have released reports which uphold this stance.

As competition between U.K. telecom providers brings the price of broadband connections down, more and more households are upgrading to high speed services. eMarketer’s recently released “U.K Online” report shows that the U.K. has the fifth-highest broadband connection in the world, with 12 million households subscribing during 2006. The U.S. has the largest number of broadband households with 54.6 million, China second with 46.6 million followed by Japan (23.7 million) and South Korea (12.7 million).

According to the IAB, 2006 saw global online ad spending reach almost $17 billion. Over 10 percent, approximately $2 billion, was spent in the U.K., more than in the U.S. and a 41 percent rise on 2005.

At the same time, 2006 saw U.K. online ad spending overtaking national newspapers’.
"Advertisers are continuing to switch more of their budgets online to build their brands and interact with their customers," said chief executive Guy Phillipson. "With consumers now enjoying even faster broadband and installing wireless routers in their homes, the growth of online advertising in the UK is set to continue unabated."

Tags: broadband, broadband penetration, eMarketer, IAB, online advertising, online spending, U.K.

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