Online advertising rapidily increases in the UK

By Dyenamic Solitions - Last updated: Tuesday, April 3, 2012 - Save & Share - Leave a Comment

UK businesses spent £4.78 billion on all forms of online advertising in the UK in 2011, with a 14.4% year-on-year growth the biggest surge since 2007, according to an Internet Advertising Bureau report.
Online advertising rapidily increases in the UK
The UK needs to see growth of just over 4% in 2012 – pretty much a racing certainty given historical levels – for the market to be worth £5 billion annually.

Strong growth in 2011 was partly due to an explosion in advertising on mobile devices and tablets, which rose 157% to £203 million last year.

Online video advertising doubled year on year to £109 million as online TV services such such as the ITV Player and Channel 4’s 4oD increased in popularity.

These two sectors have helped fuel the overall display advertising market – banners and interactive ads seen on most websites – to more than £1 billion for the first time.

Display advertising grew by 13.4% to £1.13 billion in 2011.

The IAB said that the display ad market has been pumped up by fast moving consumer goods companies such as Unilever and Procter & Gamble finally realising the importance of the sector.

The big FMCG companies are the biggest UK advertisers on traditional media, such as TV, press and radio, but have been slow to recognise the benefits of online display ads.

One of the biggest beneficiaries of the surge in display advertising is Facebook, which figures from Enders Analysis estimates doubled revenues in 2011 to £180 million.

This unofficial estimate – Facebook does not disclose its financial performance – is expected to surge by a further 60% this year to £288 million.

The stalwart of UK internet ad spend is search advertising. which is dominated by Google.

Search engine marketing- which accounts for 58% of total UK digital ad spend, grew 17.5% in 2011 to £2.77 billion.

The growth has come from the British public’s love of web search and the cost effective nature of search engine advertising.

Given that Google can start to part you from your credit card money within half an hour as you set up a pay per click advertising account, you have to be very careful if how much you will be donating to them.

For cost effective help and advise, please contact us now.

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