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Online advertising enjoys highest share of UK adspend

23 April, 2012 - Source: Internet Advertising Bureau

Online advertising now enjoys a 28 per cent share of the UK's adspend, with the sector showing an absolute increase of 16.8 per cent in 2011 (or a like for like increase of 14.4 per cent), according to new figures from the IAB and Warc. The figures showed that UK advertising spend grew 2.7 per cent to reach £16.99 billion in 2011. 

Online advertising accounts for the majority of this boost in adspend as the money spent on internet marketing rose by 16.8 per cent in absolute terms in 2011.

Warc predicts internet adspend to jump 8.9 per cent over the course of this year, boosted by the Olympics. GroupM predicts the increase will be 11%, ZenithOptimedia has the figure at 9.5% while Enders Analysis forecasts a 12.5% growth.

Tim Lefroy, chief executive at the Advertising Association, said: "These forecasts show renewed optimism for the UK and for our leadership in the digital economy.

"This uptick for advertising is a strong indicator for growth, and we are looking at evidence that an advertising resurgence could actively boost GDP."

Other channels that saw an increase in adspend last year were TV, which rose by 1.9 per cent, and radio with a 1.6 per cent growth.

Tim Elkington, Director of Research and Strategy for the IAB said: “The growth in online advertising in 2011 illustrates the high value that advertisers place on digital media – whether it’s using paid for search to deliver site traffic or online sales or the new, growing areas of mobile, social and video to engage with people online as never before”.

Market Share by sector

Internet 28%
TV 26%
Press Display 16%
Direct Mail 10%
Press Classified 7%
Outdoor 5%
Directories 3%
Radio 3%
Cinema 1%
Year on Year growth by sector

Internet 16.8% (like for like 14.4%)
TV 2.3%
Radio 1.9%
DM 1.0%
Outdoor 0.7%
Directories -3.6%
Cinema -5.5%
Press Display -5.9%
Press Classified -13.5%

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