Sign of the times. The Interactive Advertising Bureau reports that online advertising spending in Britain surged by more than 60 percent in 2004, and is for the first time edging ahead of radio in terms of market share. The IAB numbers were compiled by PricewaterhouseCoopers. Yesterday's Guardian reported:
Internet advertising appears to have won over the marketing sceptics after outstripping radio for the first time last year, according to figures published today.
Strong growth in broadband subscriptions helped online advertising expenditure to grow by 60% last year to £653.3m in Britain, beating a total of £637.4m for commercial radio, according to research for the Interactive Advertising Bureau. The internet edged above radio in terms of market share, taking 3.9% of total spending against 3.8% for its closest rival.
And online advertising is expected to continue to grow rapdly:
The Advertising Association published a glimpse of the growth prospects for internet advertising in 2005 yesterday. Online spending is forecast to rise by more than a third this year, 12 times faster than on national newspapers and nearly 40 times quicker than on direct mail as companies spend more money on web marketing.
The rapid rise has been fuelled partly by an explosion in paid-for searches, whereby companies pay to display their adverts alongside the results of searches for words or phrases such as "Kylie Minogue" or "Doctor Who".
But this growth is from a very low base:
The phenomenal growth rates for internet advertising over the past few years reflects the medium's relatively low start base. "Spending online is growing at an unprecedented rate but it still only accounts for around 3% of overall spend," said the spokesman.
Related press reports here.
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