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Internet advertising grows at an 'astounding' rate
A new report reveals that Online Marketing is growing at an "astounding" rate.
According to figures from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, Online Advertising spend in the UK increased by a massive 41.3 per cent year-on-year in the first half of this year, to £1.3 billion.
The study also predicts that expenditure on online advertising could hit £2.75 billion by the end of 2007, suggesting that anyone who is not already engaged in Internet Marketing should get their skates on.
Online has now overtaken the size of the direct mail sector, with online classified ads growing by a particularly sharp 72 per cent to £277.7 million.
Internet display advertising, including banners and skyscraper ads, was up by 33 per cent to £287 million, and paid-for search advertising was up by 44 per cent to £762.3 million.
Paid-for search represents 57.1 per cent of the online total, with growth attributed to the fact that at least half of all online transactions begin with a search. Little wonder, then, that companies such as Google are raking in such massive profits.
The IAB has identified four key drivers for this phenomenal growth - the rapid growth of broadband internet connections; the migration of consumers to the online channel; the boom in social networking websites; and the increasing sophistication of measurement and web analytics.
Nicki Lynas of PricewaterhouseCoopers said: "The latest results for the first half of 2007 show that the UK's internet advertising industry continues to strengthen.
"The growth levels seen by the companies in the survey prove that advertisers are increasing their spend online at a rate that shows no signs of levelling out."
Online Advertising news posted on 02 October 2007
