Post written by Jack Marshall
The U.K. is to become the first major advertising economy to see online spending surpass traditional TV ads, according to forecasts by media buying agency Group M.
The report also states that online is set to overtake TV in Sweden within the next 12 months.
Drawing on data provided by holding company WPP’s international advertising and market research resources, the snappily titled ‘This Year, Next Year’ study predicts that online will account for almost 24.8 percent of U.K. ad spend by the end of 2008, compared with a 26 percent share for TV ads. This would mean that online would need only a 6 percent year-on-year increase to overtake TV in 2009.
Speaking to the Guardian, GroupM’s Adam Smith pointed out that TV’s advertising market share suffers slightly in the UK however, thanks to some publicly funded channels from the BBC.
He also cautioned that the predictions do not necessarily reflect a decline of TV as a major advertising medium, stating that most of the growth in online spending is “being fuelled by either new money or from the direct marketing sector, not so much from TV ad budgets.”
The report also predicts that Internet spending will exceed 10 percent of global ad investment for the first time ever in 2008.