More NewsOnline Ad Spend in the U.K. Exceeds Estimates

Online Ad Spend in the U.K. Exceeds Estimates

Online advertising overtook outdoor spending in the U.K.

Online advertising revenues in the United Kingdom increased by 62.3 percent in the first half of 2005 over the same period last year, overtaking outdoor in market share a full year earlier than expected. The figures come from a report conducted by the U.K. Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, which is expected to be released today.

The online ad spend climbed to £490.8 million ($861 million) in the first six months of this year, exceeding previous estimates for the period. The uptake equaled a 62.3 percent increase over the first half of 2004. IAB U.K. expects growth to reach £1 billion ($1.8 billion) by year end. In 2003, the total ad spend for the year equaled £407.8 million ($715.9 million), less than what was brought in during the six month period between January and June of this year.

Online rose to account for 5.8 percent of the market, surpassing outdoor advertising, which accounts for 5.1 percent of the total ad spend in the U.K. Previous IAB U.K. estimates expected online to overtake outdoor by mid-2006.

The IAB U.K. attributes the growth in online spending on four factors. An increase in broadband penetration, rich media, media consumption, and an online retail boom all drove the shift of ad spending to the Web.

The news of the 62 percent increase in ad spending in the U.K. comes one week after the IAB in the U.S. announced a 26 percent rise in the first half of 2005 over the same period one year before.

The IAB U.K. report was compiled from a survey of 75 companies representing thousands of Web sites. Total advertising revenue is reported on a gross basis. The IAB U.K. has worked with PricewaterhouseCoopers to report on online advertising since 1997.

Related Articles

GDPR: The role of technology in data compliance

Data & Analytics GDPR: The role of technology in data compliance

2w Clark Boyd
What companies can learn from the We-Vibe lawsuit about the Internet of Things

Legal & Regulatory What companies can learn from the We-Vibe lawsuit about the Internet of Things

8m Al Roberts
Has advertising arrived on Google Home?

Media Has advertising arrived on Google Home?

8m Al Roberts
Is Twitter slowly dying?

More News Is Twitter slowly dying?

9m Al Roberts
FedEx launches fulfillment service to take on Amazon

Ecommerce FedEx launches fulfillment service to take on Amazon

9m Al Roberts
Target is the top retail digital marketer, so why is it struggling?

Ecommerce Target is the top retail digital marketer, so why is it struggling?

8m Al Roberts
YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

More News YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

9m Al Roberts
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts