Friday, May 11, 2007

Online Ad Spending Up in UK


Brits believe in online.

Internet display ad spending, excluding search and classified, grew 9% in the 12 months ending March 31, 2007, according to Thomson Intermedia. The Internet was one of the strongest sectors driving overall UK media spending, which increased 5% during the same period.

Sarah Jane Thomson of Thomson said, "One fear we should see assuaged with time is of audiences fragmenting endlessly, eroding forever the critical mass traditional media once offered."

eMarketer Senior Analyst Karin von Abrams said UK market changes prompted media variety.

"Uncertainty about the evolution of channels and audiences has encouraged some brands to reconsider the potential of 'old' media, such as press and door drops, for making an initial approach to consumers."

GroupM data, which included all forms of digital advertising (and are based on calendar years), revealed even greater online growth compared to the overall market. The firm put 2006 digital advertising growth at 39.1%, and estimated 36.2% growth for 2007.

Ms. von Abrams says Internet advertising usage and spending will continue to affect the market as a whole.

"We're not surprised to see spending on Internet display ads continue to outstrip the modest overall rise in UK media spend. Search-related advertising is growing even more quickly.

"At the same time, advertisers and marketers are still struggling to exploit the full power of the Internet, and the relation of online to other media. Real progress may come incrementally."

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