Internet Grows At 21% During The First Half Of 2008

By Author: Mediarun Search
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In a recent report published by the IAB, UK internet advertising agencies grew 21% year on year for the first two quarters of 2008. (Jan - June). The figures, from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, put the total UK online ad expenditure at £1.7 billion for this period. In the same period last year, online advertising spend was £1.3 billion and the medium grew by 41.3% from £917.2 million year-on-year with online's share growing to 15.3% for the whole of 2007, up from 11.4% for 2006.

This new figure takes internet advertising to a record new market share of 19%, slightly behind total press and TV ad revenues. The total advertising market was £8982.5 million, down 0.7% year-on-year, during the period January to June 2008. Without internet advertising growth the entire advertising sector would have experienced a 4.6% fall. Online exceeded expectations to increase its market share by four points to 18.7%, only 0.6% behind total press display (19.3%) and 3% behind TV (21.7%).

All formats have experienced better than expected growth with search marketing (Paid for search) leading ...
... the way by growing 28% year on year. Advertisers spend £981 million in the first half of 2008, with its market share marginally up to 58.3% of total online advertising (57.8% in first half of 2007).

With the mayhem in the financial markets and global uncertainty there is expected to be a major slow down in the UK economy over the next 12 months. This will have a knock on effect on the advertising industry with advertisers reducing spend primarily on traditional and brand directed activities. However the prospects for online remain buoyant, as it's highly ROI driven and can be measured. With companies looking at innovative and cost effective routes to generate business search marketing (SEO and PPC) will increasing become part of the marketing strategies for companies both big and small.

Mediarun Search is a SEO agency specialising in search marketing services, social media optimisation and pay per click management in London, UK.