An earlier blog post revealed that, in 2009, Internet ad spend in the UK had increased on the previous year and is predicted to carry on increasing, with a notable point made that last year (2009) the UK became the first major economy where advertisers spent more on Internet advertising than on television advertising1.
One source for this information was a study by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers. This report also analysed factors that maintain and help grow the market. Of these factors, the main catalysts were found to be1:
- Greater advertiser confidence: Optimism is returning to UK marketing companies with marketers at 300 leading companies collectively offering the most positive financial outlook since the second quarter of 2005, when the question was first asked. Budgets are set to increase in 2010 despite the 9th consecutive period of budget cuts in the final quarter of 2009.
- More people online: As another previous post discusses, Internet users in the UK are increasing year after year. For marketers, the more people there are online, the more people there are to advertise to.
- Faster broadband drives video advertising: The report claims that 92% of the UK with Internet access has broadband and 63% of these have access with speeds of over 2MB. As a result of this, Internet users can experience dynamic video and high quality media executions, which inspire the use of techniques such as viral marketing.
- Social media explosion: In the last few years, social media sites have been increasing in number and popularity. The report alleges that 20% of time spent online in the UK is spent on Facebook. Social media has caused online sessions to become more immersive and has given brands the ability to engage with their customers, allowing for more entertaining and appealing ads.
To find out more about Internet advertising and how you could exploit the above factors, or for other Internet marketing strategies, visit our home page.
Sources: 1. IAB Online Adspend Study for 2009
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