Online adspend: up to more than £2bn as other media suffer

by Jacquie Bowser Brand Republic 21-May-07, 11:25

LONDON - UK advertising expenditure on the internet increased by almost 50% in 2006 to over £2bn, while most other media suffered a decrease in revenue, according to a report by the Advertising Association.

The internet achieved a market share in excess of 10% of the total advertising expenditure, which was more than £19bn in 2006.

But the press sector, including national and regional titles, accounted for by far the largest share of the market with 43.7% or £8.4bn, followed by television with 24.1% (£4.6bn) and direct mail with 12.2% or £2.3bn.

The internet accounted for 10.6% of the market, outdoor 5.7% or £1.1bn, radio 2.8% (£534m) and cinema 1.0% or £188m.

Total adspend was calculated to reflect advertising spending in total, rather than media income, and therefore includes production costs, advertising agency fees and commission as well as media expenditure.