Internet Advertising becomes the largest advertising sector in the UK
Spending on Internet Advertising has overtaken Television Advertising for the first time by a major economy. The UK spent a record £1.75 billion on Internet Advertising during the first 6 months of 2009, a 4.6% year-on-year increase. 60% (1.05 billion) of which was spent on search engine advertising using systems such as Google's Adwords, according to a report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.
Internet advertising was worth £19.4 million in 1998 and has built up over the past 10 years to displace TV advertising, which held the top spot for 50 years.
23.5% of all advertising money spent in the UK is on Internet advertising, while TV advertising has dropped to 21.9%.
Google has around 90% of the UK search market, which means an estimated £900 million went to the Internet giant in the first half of 2009, overtaking ITV in advertising spend takings.
Google is now earning more from advertising spend than any other company in the UK through its Adwords Pay Per Click (PPC) service (shown below). It has now overtaken ITV.
The UK is not the first country where internet ad spend has overtaken TV spend, Denmark reached the milestone about six months ago. But it is the first major economy to do so.
Possible reasons why the UK is the first major economy:
- online networks to place advertising
- availability of fast and cheap broadband
- new formats such as video adverts
- BBC not allowed to advertise
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Further information:
Guardian
Telegraph
New Street Journal
