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Surge in online advertising spending

Internet has biggest rise while TV and press fall


Internet service providers

Online advertising spending has soared to more than £2 billion, official figures out today show.

It surged 47.5 per cent between 2005 and 2006 compared with a drop in both press and TV advertising expenditure.

The internet scooped more than 10 per cent of the UK’s annual advertising spend for the first time.

Annual figures released by the Advertising Association today show the UK’s total advertising expenditure in 2006 was more than £19 billion.

Spending upturn

The internet enjoyed the biggest spending upturn at 47.5 per cent year-on-year to £2.01 billion.

Print media, which includes all magazines and newspapers, drew the highest advertising spend of 2006 at £8.34 billion – despite a 2.7 per cent year-on-year drop.

TV advertising spend dropped 4.7 per cent year-on-year to £4.59 billion.

This was the first dip in television advertising expenditure since 2001, according to the Advertising Association.

The amount spent on direct mail advertising dropped 2.1 per cent to £2.32 billion, while radio fell 7.7 per cent to £534 million.

Cinema advertising spend was static at £188 million.

Could overtake television

The Internet Advertising Bureau, the trade association for the internet marketing industry, said online advertising spend could overtake television within three to four years.

IAB chief executive Guy Phillipson said: ‘The time people spend online keeps going up each year, so advertisers follow their audiences online to spend money on the medium.

‘I believe online spend could overtake TV within the next three to four years.’

Figures released by the Interactive Media in Retail Group (IMRG) last week showed Britain’s total online transactions since 1995 had hit £100 billion.

The figure for last month alone was £3.465 billion – up 55 per cent year-on-year.

Consumers online

Commenting on the Advertising Association’s latest figures, IMRG spokesman James Roper said: ‘The advertising spend is going where consumers are. Consumers increasingly spend their time online for a myriad of reasons.

‘Obviously that is the place a lot of people choose to get news and shop. And social sites are growing hugely as well.’

The Advertising Association is a federation of 31 trade bodies and organisations which represents the UK advertising industry.

Its annual expenditure figures are researched and compiled by the World Advertising Research Centre.

The UK’s total £19 billion ad spend includes production costs, advertising agency fees, commission fees and media expenditure.

The Press Association, All Rights Reserved.

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