UK internet ad spend on the up

UK internet ad spend on the up
An increasing number of British companies turned to online marketing during 2006, a new study reports.

According to research by Thomson Intermedia, some £235 million was spent on internet advertising last year, an increase of 19 per cent from 2005, reports Reuters.

However, the study does not include popular search and classified websites such as Google and Yahoo! due to reported technical difficulties in measuring the websites accurately.

Chief executive Sarah Jane Thomson told the news agency: "The protracted fade of TV advertising and the inexorable rise of online [advertising] look set to continue."

Overall media advertising spend growth during 2006 was reported to have remained static from 2005, accounting for nearly £11 billion.

Radio saw the largest year-on-year decrease out of the entire advertising sector, with spend falling by £300 million.

Meanwhile, television advertising spend was down by about four per cent.

However, Thomson Intermedia warned that the rapid rise in online advertising could be set to slow this year, as major internet sites are reported to struggle to attract larger consumer audiences.

A report by Outsell claimed that internet marketing is set to see an 18 per cent increase in revenue over 2007, while spending in traditional avenues such as print and television will fall by 3.5 per cent compared to last year.

Back 14.02.2007.

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