Media News - Wednesday, September 30, 2009

UK Internet ad spend overtakes TV for first time

Spending on Internet advertising in Britain grew 4.6 percent in the first half of 2009, outperforming the wider ad sector, which slumped 17 percent, and making it the country's biggest ad medium ahead of TV. According to the biannual report from the Internet Advertising Bureau (IAB), ad spend on the Internet grew to GBP 1.75bn, with the medium accounting for 23.5 percent of all spend, ahead of television for the first time. Guy Phillipson, chief executive of the IAB, told Reuters the jump ahead of TV as the leading medium had come earlier than he expected and that the growth boded well for the rest of the year. He believes there will be some growth in 2010 for online advertising, and double digit percentage growth by 2011. Online growth had slowed considerably compared with the 21 percent reported for the first half of 2008, but it still fared far better than television, print and radio, the report by PricewaterhouseCoopers and the World Advertising Research Centre said. "Perhaps surprisingly, a slowing economy has accelerated the migration to digital technology," Eva Berg-Winters of PWC said. "Hence the continuing shift from more traditional forms of advertising to online, which promises return on investment and measurability in a period of instability." According to the report, the Internet accounted for 23.5 percent of all spend, compared with 18.7 percent in the first half of 2008. Television accounted for 21.9 percent, press display for 18.5 percent and direct mail for 11.5 percent. (Reuters)

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