UK 2007 Internet Advertising Spend Up 38%

The UK Internet Advertising Bureau announced that internet advertising grew 38% year on year to reach £2.8 billion in 2007. This is significantly higher than the 4% growth across all advertising. Internet advertising now represents a 15% share of all advertising.

Within internet advertising:-

• paid for search (pay per click) spend was £1.6 billion (up 39%) 
• display advertising was £0.6 billion (up 31%)
  
• classified advertising was £0.6 billion (up 54%)

The IAB forecasts that internet advertising spend will overtake TV next year (which was £3.4 billion in 2007). However, some of Britain's biggest brands have relatively low internet spends. e.g. Britain's biggest advertiser P&G which owns brands like Pampers, Olay, Pantene, Crest & Gillette invests just £2.4 million online compared with £40 million on TV.

A significant factor in the growth in internet advertising especially Pay Per Click has been the result of web marketing investment from SMEs. Many SMEs have taken to Pay Per Click internet advertising because they cannot afford to advertise on TV and more importantly, because of its accountability. Over the last 5 years, my clients have seen a high Marketing Return On Investment from their Google AdWord campaigns.

  

Remember...web marketing is about solving customers' problems profitably.

Peter Hawtin is an internet marketing specialist with Brand New Way, a UK web marketing agency which helps companies to attract and retain valuable customers online.