UK online advertising jumps to record levels

Written on:April 3, 2012
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Online and mobile advertising spend in Britain reached almost 5 billion pounds last year, powered by a substantial increase in video ads and marketing on social media platforms.

Internet advertising jumped by 14.4% in 2011 to reach £4.8 billion, notes the report from the Internet Advertising Bureau UK (IAB), conducted by PricewaterhouseCoopers. Online and mobile advertising recorded the biggest increase in internet advertising in five years – a £687m rise on the previous year.

Video advertising also continued to grow and now accounts for 10pc of all online display advertising. Online video expenditure doubled to £109m, from £54m in 2010, growing over eight-fold since 2008. On the other hand, mobile advertising grew by 157pc in 2011, recoding a rise of £203m. Rise in mobile adverting was driven by increased smartphone ownership, the development of touchscreen technology, 3G, and towering tablet sales.

Banner ads on platforms such as Facebook, YouTube and LinkedIn registered a 75% increase and reached £240m last year, fuelled by increasing popularity of social media networks, which account for 27% of all the time spent online in the UK in 2011.

“Online and mobile advertising have experienced staggering growth since this study began in 1997. The 2011 results are full of breakthroughs for digital; with online display passing the 1 billion pound barrier for the first time, proving that advertisers increasingly recognise the central role that online plays in their marketing campaigns”, said Tim Elkington, director of research and strategy at the IAB.

Finance sector spent the most on display advertising, followed by entertainment and the media, then technology, reported IAB.


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