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UK online ad market trumps TV

October 5, 2011

Advertising on the Internet increased its share of the overall UK market to a record 27 per cent in the first half of 2011, retaking the position as the dominant platform for advertisers from the TV industry.

Display advertising was the best performer within the sector, with industry experts saying that buyers in the fast-moving consumer goods (FMCG) market had discovered that video advertising on the internet, particularly through social media websites, could be a cost-effective way of reaching consumers.

Online video advertising spending increased by 100 per cent compared with a year earlier, the Internet Advertising Bureau said.

With a market up just 1.4 per cent year on year, to £8.27 billion between January and June, spending on the Internet reached £2.26 billion, an increase of 13.5 per cent on the same period in 2010.

Television spending was up 3.6 per cent to £2.16 billion or 26.1 per cent of the total market, while newspaper and magazine display advertising fell by 5 per cent to £1.37 billion or 16.6 per cent. Classified advertising in the press accounted for 7.6 per cent of the market, down 14.1 per cent at £627.6 million of expenditure.

Television was overtaken by the Internet in terms of having the greatest share of advertising spending in 2009 and won back its position at the top of advertisers’ agenda last year, but has fallen back again.

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