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James Perrin

Display Advertising and Search Engine Marketing Experience Spend Growth

10th Apr 2012 News, Industry News, News, Paid Search, SEO 2 minutes to read

GrowthIt appears that the online advertising industry has bucked the trend amongst many other sectors in the UK. Despite a gloomy outlook with the current UK economy, advertising on the Internet appears to be thriving.

That’s the  latest news from the Internet Advertising Bureau (IAB) who have conducted a report in conjunction with PricewaterhouseCoopers (PWC).

Latest figures from the Internet Advertising Bureau (IAB) have shown a huge growth of 14.4% when it comes to total advertising spend on the Internet, up £687 million year-on-year to £4.8 billion in 2011.  These figures are made all the more compelling once they have been broken down, and it’s good news for both Display advertising and Search Marketing.

Display Advertising

Display advertising has topped the £1 billion mark for the first time in 2011. Overall Display advertising accounts for a 24% share of total online advertising spend, which is an increase of 1% from last year (23%). However, the total amount that was spent in 2011 increased by 13.4% on last year, taking spend from £945 million in 2010 to £1.13 billion in 2011.

This growth has been fuelled by the need for richer and more dynamic forms of display advertising, which is becoming increasing possible thanks to faster broadband speeds, as well as cheaper Internet Access [See: As Broadband Speeds Quicken, Online Ad Spend Increases]. This is becoming a common theme with the rise of Internet Advertising, and so a lot can be thanked for faster broadband speeds as adverts can become more engaging and effective than ever before.

Looking specifically at display advertising, it is banner adverts that is driving this form of online advertising forward, and currently accounts for 73% of the display advertising share. The chances are, if you’re not already advertising with banners, your competitors are, and that’s a huge slice of traffic you could be missing out on.

Search Marketing

Even better than the display advertising figures are the search marketing ones. Search engine advertising soared from £2.35 billion in 2010 to £2.77 billion in 2011, that’s a whopping increase of 17.5%. The news gets even better for search engine marketers because this form of online advertising has increased its percentage share of total online advertising spend from 57% in 2010 to 58% in 2011 – meaning that it is still the dominant driver of total online advertising spend.

What are the implications of these figures? Well in one sense it means that if your business is not already taking advantage of search engine marketing, whether that’s SEO, PPC or indeed both, then you could be seeing additional traffic driven towards your competitors’ websites instead. On the other hand, if you have already taken up Search Engine Marketing, you now need to make sure that your in-house team, consultant or agency is delivering you a strong return on investment.

A rise in the amount of money spent on search engine marketing means that competition will get stronger, whether it’s an increase in the volume of additional businesses taking up this form of online advertising, or a few larger companies increasing their own search engine marketing budgets. Either way, you need to make sure that your website doesn’t become swamped from the increase in money being spent from competitors.

The report by the IAB in conjunction with PWC reveals some more fascinating insights into online advertising spend for 2011, and is well worth a read.

Image Source

Business Graph Output Growth Of Silver Bars via BigStock

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