As an IAB member we have been sent details of one of their most important annual reports, the IAB/PwC UK Online Adspend Study for 2011. The following involves a study based on data from the year 1997, consisting of figures from the Official Advertising Association and other major UK media owners.
Despite the negative economic climate in the UK online ad spend experienced its biggest increase in 5 years.
The UK Adspend Headline Results :
• Online adspend at an all time high of £4,784m in 2011
• 14.4% rise on like for like basis as compared to 2010
• Search experienced the highest increase in 2011 of 17.5%
• Search now represents 57.8% of all UK online adspend
• Last 10 years’ expenditure £197m – 2002 & £4784m – 2011.
• Total advertising market (including all other media) of £8.27bn: of which online now
has a 27% Market share in 2011 as compared to only 3% market share in 2003.
• 2011 saw online overtake TV as the biggest contributor to all media advertising
• Minor difference in the % share revenue for the digital media mix in 2010 & 2011.
• 2010: Search 57% , Display 23% & Classified 18%
2011: Search 58%, Display 24% & Classified 16%
• Increase in Format:
Online video- £54m (2010) to £109m (2011)
Social media- 75%
• Increase in Advertiser sector:
Finance in the top spending display sector.
Consumer goods – 9% (2009) & 15% (2011).
Retail in the third place.
• Brand based online advertising:
2010: £221m & 2011: £257m
Online Media mix:
The method involved in retrieving the information is based on the reported revenue, submitted by 100+ participants from the UK’s major media owners. Migration from search to display resulted the revenue of Google display to be estimated by PwC advisory Board. The companies which were included as result of their submission in both 2010 and 2011 were studied and reported on their growth figures involving total spend and categories.
Year 2010‘s study highlighted ‘online ad spend growth to £4.097 billion, 12.8% on a Like for Like basis, Display £945 million, Classified £751 million and Search £2,346 million (IAB/PwC UK Online Adspend Study Full Year 2011).