UK leads the way for online ad spending

The internet takes a bigger share of total advertising spend in the UK than the US, according to UK regulator Ofcom‘s annual report into the UK’s £51 billion communications industry.

The report says that in 2007 the total ad spend in the UK was £14.9 billion, with internet advertising accounting for £2.8 billion, giving it an 18.9% share.

Spain is the closest major market to UK with online accounting for 16.9%. In the US the proportion is 12.6%, Germany 4.4%.

Ofcom breaks down the UK’s £2.8 billion into £1.6 billion of paid-for search, £600 million of display advertising and £600 million of classifieds.

Over the past five years, the total spent advertising online in the UK has grown on average by 70.2%.

TV advertising remained flat in 2007 at around £3.5 billionn. However, the proportion of people with an internet connection who watching TV programmes online more than doubled from 8% in 2006 to 17% in 2007.

The medium is also under pressure from six million digital video recorders, present in 23% of UK homes. Nearly nine out of ten people fast forward through commercials when watching recorded programmes on DVRs.

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