Online
The internet is proving to be a vital sales and marketing tool for UK businesses, based upon the findings of a recent study.
advertising spend continues to rise
Online advertising increased its share of overall marketing spend once again during the first half of 2011, as companies allocated a greater share of their promotional budgets to the web.
Research conducted by the Internet Advertising Bureau (IAB), in conjunction with PricewaterhouseCoopers and WARC, revealed that a combined £2.26 billion was spent on internet advertising between January and June.
This represented a record sum for the first six months of the year – emphasising the growing importance of the channel for business seeking to drive revenue.
Online marketing expanded by 13.5 per cent compared to the equivalent period in 2010, marking a continuation of the trend witnessed in recent years.
By contrast, the wider UK advertising sector experienced year-on-year growth of just 1.4 per cent. Business spending on web-based promotions has continued to rise at the expense of
the 20 entrepreneurcountry traditional print media, as companies have
looked for more accountable advertising techniques.
With companies able to monitor website hits, page impressions and click-through-rates, the
success of
online advertising is eminently more measurable than the newspaper, TV or radio equivalent. And in difficult economic times, business marketers need – where possible – to be able to establish a clear link between their brand-building efforts and company revenue.
If they are unable to demonstrate the success of marketing campaigns, they risk seeing advertising budgets slashed by the finance department.
Online advertising for fast-moving consumer goods (FMCG) and a triple- digit increase in online video helped the sector increase its share of the overall market to 27 per cent.
Display advertising grew by 18.5 per cent year-on-year to £510 million,
while banners and embedded formats continued to dominate online display,
generating
£374 million for a 73 per cent share.
Video doubled in size year-on-year to £45 million, and paid-for search marketing
continued to thrive due to its high level of accountability. Online classifieds grew by three per cent like-for-like to £385 million, while lead generation grew by 20 per cent to £26 million.
Guy Phillipson, chief executive of the IAB, said the “spectacular growth” of video and social media powering brand display ensured online advertising experienced a record six months.
“FMCG advertisers were relatively late to the party, but now firmly established as
the second highest-spending category,” he explained.
“They clearly have all the proof they need to invest in line with the medium’s share, and enjoy healthy returns from cross-media campaigns.” Mr Phillipson said that with direct response advertising also thriving in the current climate, online offers “a potent combination for all marketers”.
“The indications are that double-digit growth will continue in the UK,” he stated.
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