THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE

HOME  |  BRANDS
Online advertising expenditure overtakes TV for the first time

IAB figures show ad expenditure online up £82m to record market share of 23.5 per cent.

BRANDS

Online advertising expenditure overtakes TV for the first time

In the first half of 2009 internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period.

The UK remains the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as advertisers follow their audiences online and look to the internet for even more measureable and accountable methods.

Paid-for search continued to grow, proving itself a mainstay of marketing budgets with a 6.8% increase from H1 2008 to H1 2009. As the purest form of direct response advertising, search is proving recession-friendly with marketers investing £1.05bn during H1 2009, which equates to 59.8% of all online advertising expenditure.

Despite the property market crash and stalled automotive and recruitment sectors, classifieds grew by 10.6% to £385m – or 22% of all online ad spend – reaping the benefits of the continued migration of advertising from print to online formats.Online display was down 5.2% year on year to £316.5m, with an 18.1% share of all online advertising revenues. Online display buoyed a tough year as all other mainstream media saw a double digit decline.

The study breaks down the online display market by industry category, to identify the top spenders and how investment is increasing or decreasing across sectors. The results show that Technology is the biggest spender, accounting for 19.1% of the market, followed by Telecoms (13.3% rising from 9.7% the previous year) and Finance (13.2% up from 11.9). Entertainment and Media was fourth with 11.8%, while Consumer Goods saw significant growth up from 6.2% in H1 2008 to 8.1% in 2009 as FMCG marketers steadily increased digital budgets.

Guy Phillipson, chief executive of the Internet Advertising Bureau, said: “Internet advertising has beaten all expectations to achieve growth in the most challenging market conditions. Online display has performed notably well against its peers in TV, print and radio despite more than £1.5 billion being wiped off the advertising industry. We have a rollercoaster of a year ahead but even in tough economic conditions marketers still recognise the value, accountability and measurability of online advertising.”

Eva Berg-Winters, online advertising expert at PricewaterhouseCoopers LLP said: "Perhaps surprisingly, a slowing economy has accelerated the migration to digital technology and hence the continuing shift from more traditional forms of advertising to online, which promises return on investment and measurability in a period of instability. The only certainty is that this transgression demands fundamental structural change of business models across all industries."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing