A study by the Internet Advertising Bureau (IAB) and the accounts PwC has found that online advertising spending grew by 12.8% in 2010, to break the £4 billion milestone. This growth rate is three times as rapid as in 2009.
This fast and healthy growth also outpaced the rest of the advertising market, which has recovered after taking a dive during the recession. Advertisers now spend a record high £1 in every £4 on the internet.
The biggest growth area was display advertising on social networks, up by nearly 200%.
Facebook is one of several social networks to make big advances in the past year by persuading advertisers to see social networks as a place to promote their products.
Figures show that UK internet users spend on average 25% of their online time on social networks, making advertisers keen to explore these avenues.
Online video advertising came close to doubling its spend from 2010, with £54m spent on adverts that appear before, during or after video clips.
Mobile advertising is on the move too, with a 116% growth, up from 32% in 2009. £83 million was spent on mobile advertising in 2010.
Google still dominates search advertising, although growth for them in 2010 was just 8%.
Television spending bounced back after a steep decline during the recession. There has not been so much luck for magazines and regional newspapers which continue to see falling revenues. Classified advertising, once prominent in newspaper revenues, has now nearly all migrated online. Local newspapers are trying to capture some of that online advertising spending on their own websites.
Paid search continues to perform strongly with a growth of 8% year-on-year to £2,346 million, which represents 57% of total online spend (61% in 2009).
With the continued success and growth of internet advertising, and how is has proven to be attractive for an ever increasing audience – are you doing enough to maximise your potential income online?