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The internet claims a quarter of all UK advertising spending

Apr 7, 2011
The internet now takes up a quarter of all advertising spending in the UK, according to figures released by the Internet Advertising Bureau and accountants PwC. 

The value of online adverts has grown by 12.8 per cent, breaking the £4 billion milestone, and has outstripped the rest of the advertising market. 

The current area of the internet seing the biggest amount of growth has been social networks, with a rate of 200 per cent. It is thought that UK internet users spend 25 per cent of their time online on social networks, making it an ideal location for brands to advertise their products.

Additionally, video advertising, usually found at the beginning or at the end of an online clip, has nearly doubled, bringing in £54 million over 2010, up from £28 million in 2009. Mobile advertising has also experienced a fast growth rate, up 32 per cent from 2009, with a spend of £83 million. 

Chief executive of the IAB Guy Phillipson commented on this growth of online advertising: "Major brands restored their advertising budgets in 2010 and online was a big winner, breaking through the £4 billion barrier and accounting for a quarter of total UK media spend. 

"The power of online to build brands is clearly reflected in the spectacular growth of display, thanks to the popularity of social media and video formats. And with mobile advertising finally coming of age, marketers are enjoying an incredible array of digital opportunities."

Other areas of the media are also recovering though, with television advertising bouncing back last year and even local newspapers capturing advertising spending on their websites.

Talking to the BBC, Lynne Anderson of the Newspaper Society commented on local newspapers' ingenuity in this area: "Regional newspapers - print and online - are resilient, innovative and well-placed to benefit when wider market conditions improve."

IAB also predict the introduction of faster broadband speeds will open up new avenues for the web-savvy advertiser, with new formats becoming available over the next few years. 


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