A new study has revealed that spending for online advertising and internet marketing continues to grow.
The study, by the Internet Advertising Bureau (IAB), PricewaterhouseCoopers and the World Advertising Research Centre, found that online spending for advertising topped £1.3 billion in the first six months of the year
It was revealed that this figure, which is up from £917.2 million last year, had given online marketing a 14.7 per cent share of the UK advertising market.
It was also revealed that internet marketing, now the industry’s fastest-growing medium had overtaken direct mail promotions which currently hold an 11.8 per cent share of the market.
Paid-for-search recorded year-on-year growth of 44 per cent to reach £762.3 million and take 57.1 per cent of the internet’s advertising market share. It is thought that this field’s growth can be attributed the billions of search engine users who are finding companies through sites such as Google, Yahoo! and Ask.com.
Commenting on the figures Guy Phillipson, chief executive of IAB, said that the level of growth in the market was rapidly increasing and that more numbers in broadband users and a wider demographic for advertisers could account for the growth.
He added that more people over the age of 50 as well as women had access to broadband and wireless internet facilities and as such the market was becoming an attractive prospect for businesses looking to tap into the medium.
It was projected by the study that by the end of 2007 the online advertising market, which includes pay-per-click marketing campaigns, could reach around £2.75 billion.
The UK advertising market as a whole grew by an estimated 3.1 per cent during the first half of 2007 to reach a figure of around £9.1 billion. However, it was estimated that without the contribution of the internet expenditure could have dropped by around £147 million) leading to suggestions that the buoyant online market is propping up the British advertising economy.
Last month Search Engine Land reported that Microsoft was making plans to put pressure on Google’s share of the online market including acquisitions such as that of internet marketing company aQuantive.
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