UK Internet Ad Growth Outstrips All Other Media

11 February 2004

Online advertising in Britain outgrew the rest of the media market in the first half of 2003, claims the UK Internet Advertising Bureau.

Although still a minnow in comparison with major media -- adspend market share just 2% -- in terms of growth internet advertising outpaced the field.

The latest data from the IAB and PricewaterhouseCoopers reports H1 year-on-year growth at 85%, valuing Britain's internet advertising market at £151.6 million ($283.26m; €222.51m) and lifting spend to £266.5m in the twelve months ended 30-Jun-03.

Given the year-end holiday season boom, the IAB predicts full year revenues for 2003 will top £300 million for the first time, fifty per cent up on 2002.

Based on market share data from the Advertising Association, the online ad sector now leads cinema (1.1%) and at the present rate of growth could overhaul radio (currently 3.7%) within 2-3 years.

The IAB attributes the surge in spend to a number of factors: the amount of time audiences spend online, the inflow of mainstream marketers and the growing ease of using the internet.

Data sourced from: Media Week (UK); additional content by WARC staff