IAB Online Adspend Study H1 2008

These are the topline findings from the IAB Online Adspend Study showing details for the first 6 months of 2008. The topline figures were reassuring news, confirming that advertisers are continuing to realise the importance of online advertising to their marketing communications in what has been a difficult marketplace. This tracking study, dating back to 1997, presents the official industry measure and acts as the barometer for the health of the market. Total market size – Jan-June 2008

• Record spend: Online adspend in H1 2008 came in at almost the £1.7 billion mark at £1,682.5m.
• Growth: Spending on internet advertising grew by 21% year-on-year on a like-for-like basis. The advertising industry as a whole declined by -0.7%.
• Market share: Online’s share has grown to 18.7% for H1 2008, up from 14.7% for H1 2007.

Growth in context
• Internet advertising has grown faster than any other mainstream advertising medium.
• The UK advertising market as a whole declined by -0.7% year-on-year – a decrease £65.6m. Online on its own grew by £348.2m.
• All advertising markets experienced decline except for cinema and online.
• Following online’s growth of 21%, Cinema was the next fastest growing medium at 12%.

Advertising formats
The online industry has experienced strong growth across all advertising formats.

• Display: Display advertising accounted for 19.8% of online advertising during H1 2008 with £333.8m spent across all display formats throughout Jan-June 2008.
• Search: Paid-for listings maintained its position as the largest single format with a 58.3% share of the market. £981.0m was spent on search in H1 2008.
• Classifieds: Accounting for 21.5% of the market, classifieds continue their strong growth to £361.6m.
• Solus Email: Still a relatively new category to the IAB Online Adspend Study, with £6.1m being spent by advertisers, accounting for 0.4% of the market.

Source: http://www.iabuk.net