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James Perrin

13.5% Increase in UK Online Ad Spend

7th Oct 2011 Paid Search, Display Advertising, News, Industry News 2 minutes to read

GrowthInternet advertising in the UK increased by 13.5% in the first half of 2011 according to a survey conducted by the Internet Advertising Bureau (IAB), which puts spend for the first half of the year at £2.26 billion. When this is compared to overall UK advertising spend, the rise is particularly significant; there was a year-on-year growth of 1.4% to £8.27 billion between January and June 2011.

The figures have been fuelled by a surge in FMCG advertising as well as online video, which surpassed any forecasts and means that a quarter of a billion pounds more was spent on Internet advertising in the first half of 2011 compared to 2010. This puts the market share for online advertising at 27% of overall UK advertising.

The Results

Online display is still dominated by banner ads which account for 73% of the display market, but there have been some impressive increases concerning other platforms. For example display advertising increased 18.5% to £510m (23% of total online ad spend – which increased from £440m and 22% in the first half of 2010), whilst online video accounted for a 100% growth (45 million and 9% of online display market share). IAB state that this is due to an increase in advertisers using video to deliver brand messages.

In terms of paid for search marketing, there were big improvements here as well. Search increased by 12.6% year-on-year to £1.3 million and represents 58% of online advertising. IAB believe the popularity of this advertising platform is largely down to its effectiveness at delivering and measuring traffic, especially for those who have limited budgets.

For search engine marketing, these figures make good reading. Companies with limited budgets still want to stay visible, and so they’re looking at more performance-based marketing platforms; this is things like pay per sale. This area grew by 20% to £26 million, that’s an increase of £4 million from the same period last year.

Improved Visibility

As mentioned it was the Fast Moving Consumer Goods (FMCG) sector that played a huge part in the overall increase of 13.5% in online ad spend, who account for 15% of the market in terms of expenditure. Other big players include the finance sector (16%0, entertainment and media (12%), travel & transport (10%) and retail (10%).

The FMCG sector’s increase in online ad spend comes at a time when they’ve become particularly engaged in search engine marketing [See: Improve Your Brands Visibility with Search Engine Marketing]. This method is proving effective for many brands and these recent figures have proved that FMCG’s are taking advantage of the surge in online purchasing of their goods, whether it’s toiletries or grocery items.

With faster broadband speeds and advancements in technologies, Internet advertising is becoming more prevalent. The popularity of tablets and Smartphones will also play it’s part in getting more people online and so making sure your brand or business is seen online has never been more important.

Online advertising is still on the rise, but as many businesses across many sectors have shown, being visible is important to getting that increase traffic and custom. So if you’re business or brand isn’t advertising in some form or another you could be missing out on a huge slice of the pie.

Image Source

Business Graph Output Growth Of Silver Bars via BigStock

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