RAB cries foul as online adspend overtakes radio for the first time

by Mark Sweney and Colin Grimshaw, Marketing 05-Apr-05, 11:00

LONDON - The Radio Advertising Bureau (RAB) has reacted angrily to claims that online adspend has exceeded that of radio, saying the figures are 'not a true and fair reflection of the internet's scale as an ad medium'.

In figures exclusively revealed by Marketing, the annual report from the Internet Advertising Bureau and PricewaterhouseCoopers puts 2004's online spend at £653m -- up 60% on 2003 -- with a 3.9% share of the ad market. Radio currently holds a 3.8% share, although media agencies have recently warned that radio expenditure is falling.

RAB operations director Michael O'Brien said the IAB figures were distorted as they include "paid-for-search" and recruitment ads. "While these revenues are clearly income to internet businesses, we don't feel they should necessarily be considered display advertising."

In response, IAB chief executive Guy Phillipson said: "Marketing directors look for a clear return on investment and choose a medium accordingly. We are therefore careful to cover all forms of internet advertising, so all are included in our figures."

In the second half of 2004, online advertising peaked at a share of 4.3%, not far behind outdoor's 5%.

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