UK media spend on online advertising networks will grow by 60% in 2008 to an estimated £385 million, according to a new report published by E-consultancy today.

The pace of growth for ad networks continues to outstrip overall online display advertising due to improved understanding of the potential for return on investment and increased opportunities to reach the right audience effectively, for example through the use of behavioural targeting.

The market valuation is included in E-consultancy’s new 2008 Online Advertising Networks Buyer’s Guide which contains an analysis of market trends and profiles of 28 leading networks.

The valuation of this sector is based on E-consultancy’s estimate that overall display advertising will grow by 30% in 2008 to £770 million, and that the networks’ share of this type of ad spending will grow from 40% to 50%.

Linus Gregoriadis, Head of Research at E-consultancy, said: “Online ad networks operate in one of the most competitive spaces in the digital sector, and often one of the most controversial. But in spite of their challenges, networks continue to benefit as marketers raise their digital budgets and recognise the economies of scale networks bring to campaigns.”

This report’s last update, released in January 2007, estimated that media spending with ad networks doubled to £120 million in 2006. Similarly impressive gains were evident last year. E-consultancy has also estimated that the market for ad networks doubled in 2007 from £120 million to £240 million.

Gregoriadis added: “The growing influence and momentum of networks is evident from the large number of new players since our first buyer’s guide on this topic in 2005. The best networks have been able to differentiate themselves with the use of behavioural targeting to help advertisers target their audience more effectively.”

Journalists

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Headline market trends in 2008

-) Networks take larger slice of display advertising pie.
-) Publisher-driven networks add to competition.
-) Offerings broadened to provide one-stop-shop networks.
-) Brands exploit behavioural targeting to increase return on investment.
-) Advertiser concerns persist despite increased regulation.
-) Ad exchanges yet to gain traction among networks.
Report URL

http://www.e-consultancy.com/publications/online-advertising-networks-buyers-guide-2008/

Which ad networks are featured in the buyer’s guide?

24/7 Real Media, AD2ONE, Adconion, Adknowledge, AdLink, Ad pepper, Adsmart, Advertising.com, Adviva, Burst Media, Casale Media, dgm, DRIVEpm, .Fox, Indoor Media, Media Initiative Group,NebuAd, Oridian, Phorm (exchange), Sky Media, Tacoda, TradeDoubler, Tribal Fusion, Unanimis, Utarget.Fox, Valueclick Media, Wunderloop (exchange), Yahoo!.

Media contacts:

Linus Gregoriadis, Head of Research, E-consultancy

(e: linus AT e-consultancy.com t: 0207 681 4051 / 07956 564713)

Chris Lake, Editor-in-Chief, E-consultancy.com

(e: chris AT e-consultancy.com t: 0207 681 4052)

About E-consultancy

E-consultancy.com, an online publisher of best practice internet marketing reports, research and how-to guides, was named Publisher of the Year at the 2006 AOP Awards.

Since moving to a paid content model, it has since amassed thousands of paying subscribers, more than 65,000 registered users and 150,000+ unique user sessions per month. Subscribers pay from £195 per year to access exclusive and practical content.

E-consultancy has more than 100 events lined up for 2008, including roundtables and monthly Supplier Showcases, where six suppliers pitch to an audience of pre-qualified buyers in a Central London venue.

E-consultancy also provides a range of public and in-house training programmes, such as seminars and workshops. Public training courses include London seminars on Online Media Planning and Buying.

http://www.e-consultancy.com/about/

Other recent E-consultancy reports

http://www.e-consultancy.com/research/

Published on: 12:00AM on 12th May 2008