Online Ad Growth from IAB

Total online ad spend in Britain grew by 7% in 2001 to reach around £160 million according to the latest survey from the Interactive Advertising Bureau (IAB). It is thought that the data show signs of strong growth in contrast to the wider depressed advertising scene.

The survey itself is based on research carried out by PricewaterhouseCoopers and it measures online media owners' own financial estimates of revenues. The data shows that some ad spend gains were made during the first half of 2001, aside of which, performance closely mirrored that of the advertising sector as a whole.

Relative to other media, online's performance actually echoed the trend of television and press display advertising. Driven by the weakness of brand advertising expenditure, almost all media experienced a fall during the third quarter of 2001. At the same time, media channel switching became more marked, particularly as advertisers pulled spend from television and press display to move into more accountable channels. This created much of the significant changes in the total spend in each media.

Other significant factors put forward by the research were the development of new online ad formats, including interactive 'rich media'. Along with a broad range of standards developed by the IAB, this development helped spread adspend more broadly across the portfolio of advertising products. Although the volumes and spend invested in the historically dominant banners and buttons rose, there was a marked increase in the use of rich media formats including the new standard positions such as the 'transitional' advertising spaces between pages.

Danny Meadows-Klue, IAB chairman and chief executive, noted 'The industry should be encouraged that it experienced growth despite tough economic conditions. Audiences continue rising and commercial confidence levels are up. Today the marketing campaigns of traditional brands are driving the medium's growth - replacing the marketing dominance of young Internet companies. This lays secure foundations for the sector, key to establishing a long-term pattern of sustainable growth.'

Paul Pilkington of Pricewaterhouse Coopers added, 'With year-on-year growth of seven percent - the second highest of all UK advertising sectors - the Internet can claim to have held its own in a very tough climate.'

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.