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The internet is the way forward in foodservice marcomms….

Posted on 1st April 2010 in Industry News, Insight
Written by: Andy Wickes

The internet posted an increase in advertising expenditure in the UK last year, at a time when many forms of traditional media saw revenue levels fall.

New figures from the IAB, the industry body, and PricewaterhouseCoopers, the business services group, revealed online adspend climbed by 4.2% last year to £3.54 billion in spite of the downturn and an overall decline in media budgets in the country. This growth reflects the “inexorable move of Britain’s population online”.

Paid search enjoyed an expansion of 9.5% to £2.15bn year-on-year, giving this channel a 60.7% share of resources directed to the web, up from 59.3% in 2008. Display, by contrast, shrank by 4.4% to £709 million, meaning this medium took 20% of the funds invested by brands online.Within this, web video experienced growth of 140%.

Affiliate marketing generated an uptick of 38.2%, although revenues in this area still stood at a modest £72.6m.

Estimates from the UK Online Measurement Company and Nielsen showed the web’s active user base in the UK reached 39.7 million people in February, compared with 35.5 million a year earlier. Some 92% of the internet population now have access to broadband, with 63% using services that offer speeds of two megabytes or more, providing faster streaming of video and other similar content.

Online advertising expenditure levels will rise this year so in this “medium” the outlook for 2010 looks optmistic.

Data sourced from IAB and Warc 01 April 2010