UK online ad spend: biggest leap yet

02/10/2007

Today's new figures confirm the switch to online continues to accelerate in Europe's lead media market. The internet's share of all advertising swelled to almost 15% in the first half of 2007, with further record-setting leaps in real growth. Boosted in particular by massive increases in the supply of media from social networks, and the continued switch of acquisition budgets into search, the wider media sector is starting to feel the real impact of the digital networked economy as the models that underpin many print and broadcast players get called into question.
As Digital's team forecast, online ad spend growth held steady at above 40% year on year, giving the largest quarters and rises in the history of the medium, and forcing the TV and magazine industry into panic, issuing statements in defence of classic channels.

  • First half of 2007: £1,334.3 million
  • First half of 2006: £917.2 million
  • Year on year growth: 41.3%
  • Online adspend market share: 14.7%

With the UK market acting as a key indicator for European online adspend behaviour, the results will boost stock prices for Continental firms looking for models of their own country's digital economy several years down the line. The research is particularly accurate because it relies on publisher revenue declarations (under non-disclosure agreements to PricewaterhouseCoopers), and is one of the only markets in the world to include a revenue declaration from Google.

Classifieds set to beat display:

  • Online classified advertising: up 72% year-on-year

  • Market value for period: £277.7m

  • Market share within online: 20.8%

  • Online display advertising: up 33% year-on-year

  • Market value for period: £287m

  • Market share within online: 21.5%

For further analysis from Digital on these results go to http://www.digitalstrategyconsulting.com.

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