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#1
18-06-2008, 11:09 PM
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Online ads to overtake TV
Online ads to overtake TV
The internet will overtake TV as the biggest advertising platform in the UK this year with total ad spend of around £3.56bn, according to a report by Enders Analysis. Although the main vehicle for growth continues to be on search engines such as Google, a forecast by Enders Analysis' Ian Maude said there had already been early signs that the popularity of online video was also making a small contribution to a shift in advertising from TV to online. "Rising internet consumption and surging consumer e-commerce continue to drive strong growth in online advertising, particularly paid search, in spite of the deteriorating economic outlook," the report said. "Our forecast for 2008 is that online advertising expenditure will grow 26.4% in nominal terms to £3.56bn, overtaking TV ad spend, which we expect to fall 2.5% percent to £3.39bn." The report added that Google would remain the biggest beneficiary of the growth in search advertising and predicted it would take 80% of UK spend on search advertising, up from 78% in 2007. In addition, the report predicted growth in online classified advertising, which increased 54% last year, would slow in 2008 due to declines in recruitment and property listings. City analysts previously said advertising budgets had moved online at the expense of UK newspapers
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