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BizReport : Advertising archives : April 03, 2009

U.K. leads the way in online advertising

Despite the overall advertising spend in the U.K. falling 3.5% to $25.7 billion in 2008, online advertising spend experienced growth - the only marketing medium to do so.

by Helen Leggatt

iab logo.jpgAccording to the IAB's latest figures, spending on Internet advertising in the U.K. rose 17% in 2008. This, say experts, is a result of increased pressure on marketers to demonstrate and improve ROI. The Internet's accountability and cost-effectiveness also puts it in the top drawer of a marketer's toolkit.

The largest chunk of online spend went to paid-search marketing, up 22.7% on 2007 to almost 60%, while online display accounted for 19%.

Recruitment continues to be the leading sector, accounting for 23.8% of all online advertising spend, followed by automotive (13.5%), technology (11.2%), property (9.7%) and finance (7.6%).

Britain is now leading the way in Internet marketing.

"The U.K. is now the global leader when it comes to online advertising, with UK advertisers have become digital savvy and they're now using rich media, ad networks and search in intelligent ways to achieve their sales and brand targets," said Guy Phillipson, chief executive of the IAB.

"This shift to digital has propelled online to become a 20% medium."

Tags: accountability, ad network, Internet advertising, Internet marketing, online advertising, online spend, ROI

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  • In 1920 majority of shareholders sold their stake in Ford because they insisted the auto industry had reached its peak. Maybe they were right in light of the events with the Big 3 recently.

    Many are saying that Online Advertising has reached its peak already.

    Major trends follow the S-curve where it takes 50% of the time to reach 10% of the market and the same amount of time to reach 90%.

    With that logic, online advertising is now at 8-9% of all marketing budgets. It would be a strong indicator then in the next 10-12 years it will be 90%.

    We are about to witness a major shift and transfer of wealth. Which side will you be on? Online Advertising with



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