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I wonder who will be bold enough to call the 'top' of the market. I have felt that online will easily reach a 15% share of advertising revenue for some time now, but it feels like we will surpass this figure even quicker than many anticipated.
With so many distribution channels yet to be fully realised, including the burgeoning community networks and natural search optimisation, the challenge to digital agencies will be how to embrace their clients’ needs at a pace that keeps up with a voracious consumer demand.
The latest data from the Internet Advertising Bureau (IAB), carried out in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) confirms that online advertising's break-neck growth continues to outpace any other form of advertising media.
Given that the wider UK advertising sector is struggling, and in many areas is depressed, the 40.3% like-for-like annual growth for the first half of 2006 confirms that we are in for another record-breaking year and pushes online’s share of the pie to 10.5%.
I confess that I have little time for the pain in some sectors. For so long most mediums have relied on advertisers not knowing which half of investment is being wasted. Along comes online with fantastic measurement tools and, although we have much to do, including extending our insights to bridge the online-offline divide, clients are responding with their wallets.
2006 will not be far off £2 billion in online revenues - bring on 20%!
Arjo Ghosh is CEO of Spannerworks, a search engine marketing agency.