Think BR: Hard work and education pays in online adspend figures
The latest IAB adspend report points to a potential £4bn year for online and there remains plenty of room for growth, writes Guy Phillipson, chief executive of the IAB.
Guy Phillipson, chief executive of the IAB (Picture: Phil Rudge)
So, we’re back to double digit growth, and can today reveal that while the advertising industry as a whole made an impressive comeback in the first half of the year, online has been a significant driving force, increasing by a rather wonderful 10%. It’s fair to say that at the IAB we’re over the moon… but not surprised.
There are many reasons for this resurgence in online adspend. One is increased investment by major brands – particularly in FMCG and Entertainment.
The effectiveness of social and video ads for classic brand building is reflected in strong growth in both these areas with pre- and post-roll video increasing by 82 per cent to £20.7million and social media sites now accounting for an estimated 13% of all online display advertising.
This growth has not been achieved in a vacuum. A lot of the ground work was done amidst the financial uncertainty that has affected the advertising industry over the last two years. Even in the darkest moments of recession, online continued to attract advertisers seeking to learn more about online in order to secure a better return on their investment.
The fact that they had a positive experience as a result of this education process is reflected in the 2010 first half increase – and it’s a strong indicator of the future health of the online sector. Indeed, looking ahead, if growth rates continue at this pace, online should tip past the milestone of £4 billion by the year end.
Looking to the future, we can already read encouraging signs from a number of new and expanding markets, a symptom of the growing individual strength of online’s various disciplines.
This is the first time that we have measured the contribution of Lead Generation, for example. Already accounting for £21.6 million, or 1% of all online advertising, this is clearly a sector to watch in the future.
Dynamic in-game advertising will be another key growth area. UKOM data recently showed that gaming accounted for 4% of all time spent online. However looking at the adspend figures, we find that a mere £3.3m is spent on in-game advertising. We expect to see strong growth in this sector in future waves of the IAB/PwC survey. Watch this space.
With the various different strands of digital advertising (video as a brand-builder, social as a ‘buzz’ generator and lead generation as a pure sales tool) all seeing a boost in the first half of the year, we’re beginning to see brands developing their ‘online portfolio’.
This can only be a good sign for the future. Back in 2003 when online accounted for £1 every £30 spent on advertising, it seemed unlikely that in 2010 £1 in every £4 would be spent online. As we head towards 2011 this is the strong position we find ourselves in. Long may the growth continue.
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