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The internet will account for a fifth of all UK advertising revenue by 2009, and will almost match the amount spent on TV advertising, according to figures from ZenithOptimedia.
The group's Advertising Expenditure Forecast reveals that the UK has the world’s highest proportion of online ad revenues, at 13.5%. This is attributed to the strength of the BBC.
Two countries with strong public sector broadcasting, Sweden and Norway, are the only other nations to have their proportion of internet ad spend over 10% of total advertising revenue.
Other predictions by Zenith include:
• Global internet advertising expenditure will grow 28.2% in 2007, while expenditure in other media will grow by just 3.9%.
• The internet’s share of total ad expenditure will increase from 5.8% in 2006 to 8.6% in 2009, and is headed for well over 10%.
• The internet will overtake outdoor advertising this year and radio in 2009.
Zenith predicts that there is still much room for growth, with increasing internet access. Penetration stands at around 70% more mature markets, but is only 17% worldwide.
Even in mature markets, the US, Japan and the UK, there is still plenty of room for growth. While consumers in these three countries spent 21.9% of their media time on the internet, advertisers only spent 6.8% of their budgets online.
Online Advertising Networks – A Buyer's Guide 2005