Online Ad Spend Up

The UK Internet advertising sector increased revenues by 4.2% to 3.54 billion in 2009, up from 3.35 billion in 2008, despite a decline in total UK advertising, according to the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC) bi-annual ad spend figures. The study also reveals that the second half of 2009 was healthier than the first, with online advertising spend increasing by 25.6 million to1.78 billion between July and December. During the first half, it accounted for 1.76 billion. Records show that, since the dot com crash of 2001, Internet ad expenditure registered growth every year during the noughties. From 153 million in 2000 to 3.54 billion in 2009.
In 2009, the Retail and Consumer Goods categories leapt ahead to become two of the biggest spenders in online display, as marketers increased online advertising budgets. Search, video and affiliate marketing also experienced strong growth. One of the biggest gains was in paid search, which grew by 9.5% like-for-like to reach 2.15 billion, representing 60.7% of all online ad spend, compared to 59.3% in 2008.
While online display spend saw a 4.4% decline between 2008 and 2009, the market picked up as the year wore on. Between January and June 2009, display was worth 334.6 million in real terms, which increased to 374.7 million between July and December, taking total 2009 spend to709.3 million, or 20% of the online market, compared to 19% in 2008.
Within display, online video was a success story, with a 140% increase in pre- and post-roll advertising, to 28.3 million.
Affiliate marketing rose by 38.2% to 72.6million, but online classified spending fell 5.3% to 677.4 million, down from 715.2 million in 2008. Classified accounted for 19.1% of all ad online spend in 2009, compared to 21.4% in 2008.
In 2009 the advertising industry was hit hard, but online has proved itself a winning medium, capturing a greater share of marketing budgets, says IAB CEO, Guy Phillipson. In the past year weve 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.
The IAB and PwC are due to release mobile ad spend figures for 2009 on 27 April.