UK online advertising passes £4bn

A 27.5% year-on-year surge in UK online display market attributed to Facebook as advertisers climb on social media bandwagon The seemingly unstoppable rise of Facebook fuelled year-on-year growth of more than a quarter in the UK online display advertising market to almost £1bn last year, as the total internet ad market cracked £4bn for the first time. The Internet Advertising Bureau’s annual report, compiled with PricewaterhouseCoopers and published today, attributed a 27.5% year-on-year surge in online display advertising to £945m to the Facebook effect as advertisers clambered on board the social media bandwagon. In total the UK ad market grew by 12.8% year-on-year in 2010 to pass the £4bn mark, with £1 in every £4 spent on marketing and advertising by British companies now spent online. According to industry sources, Facebook UK made about £100m in ad revenue last year. The IAB said that the spend on social media accounted for 14%, or £132m, of the online display advertising market – a 200% rise year-on-year. In 2009 the online display advertising market was worth £709m , meaning growth last year of £236m or 33%, however the IAB has stripped out “new media entrants” in the online display sector to give a like-for-like growth figure of 27.5%. The online display market also benefited from the rise of video advertising, which almost doubled in size to £54m. Online display now accounts for 23% of all internet advertising. Advertisers’ appetite to tap into the Facebook generation reduced the skew of the proportion of the total £4bn spent on internet advertising attributable to paid-for search – effectively money spent on Google – down from 61% to 57%. The paid-for search market grew by 8% year-on-year to £2.35bn. To put this in perspective the total UK TV ad market was worth about £3.5bn last year. However, TV advertising bounced back strongly from the 2009 recession, with 15% year-on-year growth in 2010, outstripping the growth rate for internet advertising for the first time since it has been measured as a substantial media more than a decade ago. Bucking the trend seen in print advertising, the online classified market grew 9.7% year-on-year in 2010 to £751m. Mobile advertising grew 116% to £83m. • To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly “for publication”. • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook . Advertising Facebook Internet Social networking Digital media Marketing & PR Mark Sweney guardian.co.uk

Posted by on March 29, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.