Internet Advertising Revenues Set to Break the Pounds 1bn Barrier

By Ian Burrell Media Editor | The Independent (London, England), October 4, 2005 | Go to article overview
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Internet Advertising Revenues Set to Break the Pounds 1bn Barrier


Ian Burrell Media Editor, The Independent (London, England)


The growth of Google and other search engines is helping the internet to take a greater share of Britain's advertising cake than more traditional media such as radio, cinema and even billboard posters.

Figures produced by PricewaterhouseCoopers (PwC) for the Internet Advertising Bureau (IAB) yesterday show that online advertising was worth pounds 491m in the first half of 2005, a year-on-year increase of 62 per cent. Annual revenues are expected to break the pounds 1bn barrier for the first time this calendar year.

The internet has 5.8 per cent share of advertising revenue, overtaking for the first time the amount spent on outdoor (billboards, bus-stop posters etc), which took 5.1 per cent of the spend. Radio accounts for just 3.6 per cent and cinema took 0.8 per cent. The total advertising spend for the first half of the year was up 3 per cent on the same period in 2004 at pounds 8.5bn.

Television, in spite of the growing prevalence of personal video recorders that fast-forward through ads, saw its share rise slightly to 23.6 per cent. Press advertising remained fairly stable at 41.2 per cent of share, split between display (21.7 per cent) and classified (19.5 per cent).

One of the hardest hit media was direct mail (down 6.5 per cent to 13.5 per cent). Directories advertising accounts for 6.

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Internet Advertising Revenues Set to Break the Pounds 1bn Barrier
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