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UK web ad revenue surges, record year expected
London, Dec 16: Britain`s surprisingly resilient online advertising sector rose again in the first half of 2003 even as a global slump grips the media world for a third consecutive year, a new survey said Tuesday.
London, Dec 16: Britain's surprisingly resilient online advertising sector rose again in the first half of 2003 even as a global slump grips the media world for a third consecutive year, a new survey said Tuesday.
According to the Interactive Advertising Bureau (IAB) UK, spending on Web ads grew 85 percent to 151.6 million pounds ($264.3 million) in the first half of 2003 from the same period a year earlier.
In contrast, the Advertising Association reported this month that UK advertising expenditures -- excluding Internet, directory and cinema advertising -- totaled 3.38 billion pounds in the third quarter of 2003, representing an inflation-adjusted decline of 2.6 percent from the year earlier period.
Britain, Europe's largest online advertising market, appears set to break through the 300-million-pound milestone for the full year for the first time in 2003, giving it two percent of the total media spending by advertisers and at least a 100 million pound increase on 2002.
The surge is attributed to the further uptake of high-speed broadband Internet access in the UK and a greater willingness of big-spending advertisers to promote their products and services on the Web, the report said.
"The tide has turned, fueled by rapid product innovation and unstoppable audience growth as British consumers have turned to the internet for everything from entertainment and job hunting to shopping and news," said Danny Meadows-Klue, chief executive of the IAB, in a statement.
The trade group said it should easily achieve its goal of doubling online advertising revenue in the UK by the autumn of 2004 from the level in 2002.
The IAB, which has branches in various European countries and the U.S., is a trade group that in Britain consists of 160 industry organizations, including Yahoo, Microsoft Corp. and Freeserve
Bureau Report
In contrast, the Advertising Association reported this month that UK advertising expenditures -- excluding Internet, directory and cinema advertising -- totaled 3.38 billion pounds in the third quarter of 2003, representing an inflation-adjusted decline of 2.6 percent from the year earlier period.
Britain, Europe's largest online advertising market, appears set to break through the 300-million-pound milestone for the full year for the first time in 2003, giving it two percent of the total media spending by advertisers and at least a 100 million pound increase on 2002.
The surge is attributed to the further uptake of high-speed broadband Internet access in the UK and a greater willingness of big-spending advertisers to promote their products and services on the Web, the report said.
"The tide has turned, fueled by rapid product innovation and unstoppable audience growth as British consumers have turned to the internet for everything from entertainment and job hunting to shopping and news," said Danny Meadows-Klue, chief executive of the IAB, in a statement.
The trade group said it should easily achieve its goal of doubling online advertising revenue in the UK by the autumn of 2004 from the level in 2002.
The IAB, which has branches in various European countries and the U.S., is a trade group that in Britain consists of 160 industry organizations, including Yahoo, Microsoft Corp. and Freeserve
Bureau Report