UK online brands increase television adspend

22 February 2010

LONDON: Online brands in the UK are seeking to leverage traditional media to drive customer awareness, with their collective TV adspend rising by £170m ($265.1m, €195.1m) in the last five years.

A new report from marketing body Thinkbox, using data from Nielsen Media Research, suggested that TV expenditure from firms in this category has risen by an average of 172% each year since 2004.

Ads for online brands now account for 5.5% of the TV market in the UK, with a total of 289 companies in this sector using this medium last year, up from 34 five years previously.

This channel now takes 71.5% of these organisations' total investment in advertising, excluding spend on online search.

Rhys McLachlan, managing partner of implementation and futures investment at MediaCom, said "web brands inevitably harness TV's unique brand-building power to help establish their own brand equity."

McLachlan also cited the decision by Google, the search giant, to spend $5m on a 60-second TV spot during the Super Bowl in the US this year as being indicative of an overall trend in this direction.

David Brennan, research and strategy director at Thinkbox, added that online brands had created some of the "most memorable and effective TV campaigns of the past year".

This is "further proof of TV's healthy commercial relationship with the internet," he concluded.

Data sourced from Brand Republic; additional content by Warc staff