Online marketing continues its domination
The internet advertising sector has surpassed industry expectations to increase revenues by 4.2% in 2009 to £3.54 billion.
This increase comes despite the global downturn and the worst advertising climate since 1982.
The Internet Advertising Bureau and PricewaterhouseCoopers bi-annual study on the industry reveals that since the dot come crash of 2001, internet advertising spend has grown consistently each year. In 2000, spend totalled £153 million and in 2009, it rings in at £3.5 billion, an increase of 2,200%.
Search, video and affiliate marketing all experienced strong growth with paid search being crowned one of the biggest gains growing by 9.5% like-for-like to reach £2.15 billion, representing 60.7% of all online ad spend (59.3% in 2008).
The figures reflect the inexorable move of Britain’s population online as recognised by the Government’s Digital Britain vision.
Encouraging end to 2009
The study also highlights that the second half of 2009 was healthier than the first, with online advertising spend increasing by £25.6 million to £1.78 billion between July and December. During the first half it accounted for £1.76 billion.
In 2009, retail and consumer goods categories leapt ahead to become two of the biggest spenders in online display, as marketers increased internet advertising budget allocations to capitalise on the medium’s accountability, reach and engagement strengths.
While online display saw 4.4% decline between 2008 and 2009 (on a like for like basis), the market picked up as the year wore on. Between January and June 2009, display was worth £334.6 million, which increased to £374.7 million between July and December, taking total 2009 spend to £709.3 million, or 20% of the online market (19% in 2008).
Online video king
Within display, online video was the real success story as spend saw a 140% increase year on year, with pre- and post-roll advertising generating £28.3 million.
Affiliate marketing – one of the oldest forms of online advertising – also saw healthy growth, rising by 38.2% to £72.6million.
Industry hit hard
Guy Phillipson, chief executive officer of the IAB, said: “In 2009 the advertising industry was hit hard but online has proved itself a winning medium, capturing a greater share of marketing budgets. In the past year we’ve seen some real success stories as search passed the £2 billion mark, and online video advertising experienced spectacular growth. And with sectors such as Retail and Consumer Goods increasing their spending on the internet we can look forward to a healthier 2010.”
Sophisticated advertising
Eva Berg-Winters, PricewaterhouseCoopers LLP, added, “Ten years ago online was a new medium with high expectations, but backed by little commercial reality. Since then it has matured to become an integral part of our lives, which marketers have learned to trust. Online is now far more sophisticated in responding to advertising needs. It delivers measurable benefits to advertisers which have prompted continued investment through the downturn.”
Among the key drives for growth was increased advertiser confidence, faster broadband speeds and the migration of more people to the online world, helped along by the uptake of social media.
Source: Utalkmarketing.com
Edited by Simon Lewis | Only Marketing Jobs
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