British Online Advertising Research

The UK online ad industry has become the fastest growing advertising medium ever, according to new research from the Internet Advertising Bureau (IAB) and Pricewaterhouse Coopers (PWC). The UK sector has also been found to be accelerating at a faster rate than its European counterparts.

This new report claims to be the first definitive report to be published on Web ad spend. The statistical base is drawn on actual ad expenditure figures submitted directly in company accounts to PwC by media owners and advertising agencies across Europe. PwC has then aggregated national expenditure data to compile a comprehensive picture of online advertising across IAB member states.

In its analysis of online advertising expenditure between 1998 and 2000 across Europe's national markets, PwC reveals that the UK has experienced rapid growth since records began in 1997. Together with France and Germany, the country leads the growth of online advertising across Europe. Total online ad spend for all participating European member states in 2000 is thought to be some £1.2 billion - an increase of a staggering 700% over the £164 million spent in 1999.

The UK still outspends other European nations in online advertising. Between 1999 and 2000, the UK grew by 135% to £209 million. This level is roughly £39 million more than it closest rival, France at £170 million. German figures show the nation's market stood at £165 million in 2000.

According to PWC senior manager Paul Pilkington, "By the end of 2000, internet advertising had reached a size comparable with cinema advertising, and in Europe the medium had shown continuous year-on-year growth despite adverse conditions in the wider advertising market."

IAB's UK chairman Danny Meadows-Klue added, "This is the first time there has ever been a true picture of the market. These are real francs, lire, marks and pounds as recorded by the finance teams in all of the companies. No other report has access to this aggregated expenditure figures that are now being used across Europe as the key barometer for the market ... online advertising is in better shape than some forecasters and pundits give it credit for."

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