WEB ADVERTISING OVERTAKES RADIO SPENDING - 5 April 2005

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ASSOCIATED NEWS MEDIA - EVENING STANDARD

 

Web advertising overtakes radio - This is Money

 

 

SPENDING on online advertising outstripped the equivalent for radio for the first time last year, new figures show.

The value of website advertising rose to 653.3m in 2004, a 60% increase from 407.8m in 2003.

 

Online revenue has grown more than fourfold since the start of the dotcom boom in 2000, according to the research for the Interactive Advertising Bureau (IAB).

Last year it accounted for 3.9% of the total spent by advertisers, up from 2.6% in 2003. Radio advertising accounted for 3.8% of last year's total market share, with 637.4m.

The IAB predicts that internet advertising, which has benefited from the growth in the number of homes using broadband, will outstrip that spent on outdoor adverts in the next few years.

 

The lion's share of advertising was spent on press (41.5%), TV (23.9%), and direct mail (14.6%). Total advertising expenditure rose by 5.8% to 16.9bn.

 

The figures, compiled by PricewaterhouseCoopers LLP and the World Advertising Research Centre, exclude the amount of cash spent on producing the adverts themselves.

 

Separate figures released by the Advertising Association today predict advertising expenditure in the UK will rise by 4.3% next year. It believes internet advertising will be the single fastest growing medium, growing by more than 33%.

 

 

 

News & city  |  Election 2005  |  London news  |  Business  |  Olympic bid

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OTHER LONDON TOP STORIES APRIL 2005 :

 

 

Allied Domecq in 7bn bid talks

MG Rover intent on salvaging deal

Market report: Tuesday close

Collins Stewart wins libel case

Loan shark bill dropped

Debenhams' 18m Allders revamp

House price confusion grows

300m hit for Yell after OFT move

Tunnel debt rescue wheels start to turn

Morgan Stanley to spin off Discover card

 

ONLINE AD SPENDING HITS NEW HIGH

 

 

 

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