Online advertising hits new high

Advertising on the internet increased by 14.4% to a new high of £4,784 million in 2011, up £687 million year on year, according to a new report.

Online advertising had its biggest increase in five years, says the study from the Internet Advertising Bureau UK (IAB), conducted by PwC.

The finance sector was the biggest for spending on display advertising, ahead of fast-moving consumer goods then retail, followed by entertainment and the media, then technology.

Video advertising continued to grow and accounts for 10% of all online display advertising.


Expenditure on online video doubled to £109 million (£54 million in 2010). The format has grown more than eight-fold since 2008, when video spend was £12 million.

Advertising on mobile devices rose by 157% in 2011, to a new high of £203 million, as a result of increased smartphone ownership, the proliferation of touchscreen technology, 3G, and soaring tablet sales.

Tim Elkington, director of research and strategy at the IAB, said: "Online and mobile advertising have experienced staggering growth since this study began in 1997.

"Advertisers increasingly recognise the central role that online plays in their marketing campaigns."

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