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  &lt;p&gt;Meanwhile, ad spend on traditional media declined, with TV advertising spend falling by 4.7% to &#163;3.9bn, and national newspaper advertising growing only slightly, by 0.2% to &#163;1.9bn. &lt;/p&gt;
  &lt;p&gt;
    &lt;a href="http://www.google.co.uk"&gt;Google&lt;/a&gt; also confirmed its dominance of the UK online ad market, gobbling up 43% of total UK online ad spend and increasing its ad revenue from &#163;483m in 2005 to &#163;872m last year. &lt;/p&gt;
  &lt;p&gt;In addition, 75% of paid search spending in the UK last year went straight into Google's pockets. In 2005, 63% of the paid search market went to Google. &lt;/p&gt;
  &lt;p&gt;Here are some other&#160;highlights from the IAB report: &lt;/p&gt;
  &lt;ul&gt;
    &lt;li&gt;The UK now has the world's highest proportion of online ad spend, with online accounting for 11.4% of total ad spend last year. &lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;By contrast, online advertising accounts for around 7.5% of total ad spend in the US, while the global average is 5.8%. &lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;National newspapers' share of UK ad spend last year was 10.9%.&lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;Paid search accounted for 57.8% of the UK&#8217;s online ad spend last year, a total of &#163;1.2bn. (E-consultancy predicted that the paid search market would&#160;reach &#163;1.26bn in May's &lt;a href="http://econsultancy.com/press-releases/199-uk-search-market-to-grow-to-1-41-billion-in-2006"&gt;Search Marketing Buyer&#8217;s Guide).&lt;/a&gt;&lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;Online display advertising (inc. banners, skyscrapers and online sponsorships) rose 35% last year to &#163;453.7m.&lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;Classified advertising online also grew, by 45% to &#163;379m, a market share of 18.8%.&lt;br /&gt;&lt;br /&gt;&lt;/li&gt;
    &lt;li&gt;Online advertising&#160;achieved its highest market share ever&#160;in the second half of&#160;2006&#160;when expenditure topped &#163;1.098bn - a 12.4% share of the market. &lt;/li&gt;
  &lt;/ul&gt;
  &lt;p&gt;
    &lt;strong&gt;Further Reading:&lt;/strong&gt;
    &lt;br /&gt;
    &lt;a href="http://econsultancy.com/reports/search-engine-marketing-buyer-s-guide-2006"&gt;Search Marketing Buyer's Guide (2006)&lt;/a&gt;
  &lt;/p&gt;
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  &lt;Paragraph&gt;Meanwhile, ad spend on traditional media declined, with TV advertising spend falling by 4.7% to &#163;3.9bn, and national newspaper advertising growing only slightly, by 0.2% to &#163;1.9bn. &lt;/Paragraph&gt;
  &lt;Paragraph&gt;
    &lt;Link URL="http://www.google.co.uk" Window="New"&gt;Google&lt;/Link&gt; also confirmed its dominance of the UK online ad market, gobbling up 43% of total UK online ad spend and increasing its ad revenue from &#163;483m in 2005 to &#163;872m last year. &lt;/Paragraph&gt;
  &lt;Paragraph&gt;In addition, 75% of paid search spending in the UK last year went straight into Google's pockets. In 2005, 63% of the paid search market went to Google. &lt;/Paragraph&gt;
  &lt;Paragraph&gt;Here are some other&#160;highlights from the IAB report: &lt;/Paragraph&gt;
  &lt;List Type="Disc"&gt;
    &lt;ListItem&gt;The UK now has the world's highest proportion of online ad spend, with online accounting for 11.4% of total ad spend last year. &lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;By contrast, online advertising accounts for around 7.5% of total ad spend in the US, while the global average is 5.8%. &lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;National newspapers' share of UK ad spend last year was 10.9%.&lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;Paid search accounted for 57.8% of the UK&#8217;s online ad spend last year, a total of &#163;1.2bn. (E-consultancy predicted that the paid search market would&#160;reach &#163;1.26bn in May's &lt;Link URL="http://econsultancy.com/press-releases/199-uk-search-market-to-grow-to-1-41-billion-in-2006" Window="New"&gt;Search Marketing Buyer&#8217;s Guide).&lt;/Link&gt;&lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;Online display advertising (inc. banners, skyscrapers and online sponsorships) rose 35% last year to &#163;453.7m.&lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;Classified advertising online also grew, by 45% to &#163;379m, a market share of 18.8%.&lt;LineBreak /&gt;&lt;LineBreak /&gt;&lt;/ListItem&gt;
    &lt;ListItem&gt;Online advertising&#160;achieved its highest market share ever&#160;in the second half of&#160;2006&#160;when expenditure topped &#163;1.098bn - a 12.4% share of the market. &lt;/ListItem&gt;
  &lt;/List&gt;
  &lt;Paragraph&gt;
    &lt;Emphasis&gt;Further Reading:&lt;/Emphasis&gt;
    &lt;LineBreak /&gt;
    &lt;Link URL="http://econsultancy.com/reports/search-engine-marketing-buyer-s-guide-2006" Window="New"&gt;Search Marketing Buyer's Guide (2006)&lt;/Link&gt;
  &lt;/Paragraph&gt;
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  <created-at type="datetime">2007-03-28T18:52:00+01:00</created-at>
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  &lt;p&gt;
    &lt;strong&gt;UK&#160;online ad spend has overtaken that spent on national newspaper advertising for the first time, while Google has also extended its dominance of the market.&lt;/strong&gt;
  &lt;/p&gt;
  &lt;p&gt;New figures from &lt;a href="http://www.iabuk.net/en/1/iabadspend2006.mxs"&gt;the IAB and PwC&lt;/a&gt; reveal that online ad spending passed the &#163;2bn mark for the first time last year, with the market growing by a massive 41% from 2005. &lt;/p&gt;
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  &lt;Paragraph&gt;
    &lt;Emphasis&gt;UK&#160;online ad spend has overtaken that spent on national newspaper advertising for the first time, while Google has also extended its dominance of the market.&lt;/Emphasis&gt;
  &lt;/Paragraph&gt;
  &lt;Paragraph&gt;New figures from &lt;Link URL="http://www.iabuk.net/en/1/iabadspend2006.mxs" Window="New"&gt;the IAB and PwC&lt;/Link&gt; reveal that online ad spending passed the &#163;2bn mark for the first time last year, with the market growing by a massive 41% from 2005. &lt;/Paragraph&gt;
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  <learn-more-formatted>&lt;p&gt;Econsultancy has published an &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/online-advertising-networks-buyers-guide"&gt;Online Advertising Networks Buyer's Guide&lt;/a&gt;&lt;/strong&gt; which contains an examination of this marketplace and profiles of 23 leading networks. We have also produced an &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/online-advertising-survey"&gt;Online Advertising Survey&lt;/a&gt;&lt;/strong&gt;, based on a survey of advertisers and agencies. For more stats and charts, see also our &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/internet-advertising-statistics"&gt;Online Advertising Statistics compendium&lt;/a&gt;&lt;/strong&gt;.&lt;/p&gt;</learn-more-formatted>
  <learn-more-unformatted>&lt;p&gt;Econsultancy has published an &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/online-advertising-networks-buyers-guide"&gt;Online Advertising Networks Buyer's Guide&lt;/a&gt;&lt;/strong&gt; which contains an examination of this marketplace and profiles of 23 leading networks. We have also produced an &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/online-advertising-survey"&gt;Online Advertising Survey&lt;/a&gt;&lt;/strong&gt;, based on a survey of advertisers and agencies. For more stats and charts, see also our &lt;strong&gt;&lt;a href="http://econsultancy.com/reports/internet-advertising-statistics"&gt;Online Advertising Statistics compendium&lt;/a&gt;&lt;/strong&gt;.&lt;/p&gt;</learn-more-unformatted>
  <legacy-article-id type="integer">362973</legacy-article-id>
  <name>Online ad spend overtakes newspapers</name>
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  <published-at type="datetime">2007-03-29T09:04:00+01:00</published-at>
  <slug>online-ad-spend-overtakes-newspapers</slug>
  <tweetbacks-updated-at type="datetime">2009-04-28T22:45:55+01:00</tweetbacks-updated-at>
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  <updated-at type="datetime">2009-10-13T08:57:34+01:00</updated-at>
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