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UK Online Ad Spending Up 17%


Only medium to grow


The Internet was the only marketing medium to experience growth in the UK in 2008, with online market share increasing to 19.2 percent as advertisers looked for more accountability and return on investment, according to the Internet Advertising Bureau (IAB).

The IAB found that spending online increased by $793 million year- over- year. This was reached against a challenging backdrop which has seen UK advertising spend fall by 3.5 percent in 2008 to $25.7 billion.

Online display was the only medium to grow in 2008, up 7.7 percent to 937.1 million, accounting for 19 percent of all online advertising expenditure. Embedded formats attracted an increasing number of advertisers due to rich media.

Paid search continues to lead the way online as marketers look for accountability, measurability and fast results. Paid search grew by 22.7 percent to $2.9 billion, a 59.3 percent share of all online advertising.

"These are really tough times and advertising budgets are being slashed,"said Guy Phillipson, chief executive of the IAB.

"More than ever, marketers have to demonstrate a clear return on their media investment - and accountability is online's trump card. UK advertisers have become digital savvy and they're now using rich media, ad networks and search in intelligent ways to achieve their sales and brand targets. This shift to digital has propelled online to become a 20% medium."





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