By: E&P Staff
Online advertising, which in Britain grew 38% last year, will overtake newspaper and television to become the U.K.’s biggest advertising medium by the end of 2009, according to a new report.
Ad revenue from British Web sites reached $5.6 billion in 2007, according to a report from the Internet Advertising Bureau (IAB), PricewaterhouseCoopers and the World Advertising Research Centre.
Fully 90% of British online users access the Net with broadband, the report noted.
Online growth in the U.K. “is head and shoulders above all other major world markets,” IAB CEO Guy Phillipson said in a statement.
Online’s market share of advertising revenue in 2007 was 15.3%, up from 11.4% in 2006. TV advertising continued to have the biggest share of ad spend with 21.8%, and newspaper print advertising was second with a 19.9% share.
With its accelerating growth, online won’t stay in third place for long, IAB CEO Phillipson said: “With broadband speeds on the up and consumers spending more time on more sites, the outlook for online advertising is rosy — in fact we expect it to overtake TV in 2009 when it will become the U.K.’s biggest medium.”
Britain’s relatively robust advertising market grew by 4.3% in 2007 — but online outpaced the overall growth by a multiple of 9.
The report showed even the older Internet ad formats, such as banners and “skyscrapers,” grew at a healthy 45% pace.
Revenue from search grew by 39% in 2007, the report said.
Online classified advertising was up 54% year-over-year.
Among ad categories, help-wanted had a 25.7% share of revenue, followed by automotive with 11.9%, technology with 10.4%, and finance 10%.