UK ad spending increasing at fastest pace in seven years
UK advertising spending is growing at its fastest pace in seven years, following strong growth online ad spending, according to a latest report. The Institute of Practitioners in Advertising (IPA) has indicated in its second-quarter adspend report released on Monday that improvement in ad budget suggests that the current year is likely to witness stronger ad spend growth in comparison with last year. At the same time the report indicated that the main media spending is just growing moderately. The report further informed that the online advertisement spending accounts for 6 percent of total marketing spend, compared with less than 2 percent in 2000.
The IPA has estimated marketing expenditure to be worth about 30 to 35 billion pounds with main media advertising constituting one third of total ad spend. According to the report, increase in media advertising budgets were most extensively observed in IT and computing, retail, consumer services, consumer goods, autos and public relations. While ad spending decreased in industrial and utilities and consumer durables. The report further revealed that almost 20 percent companies are now assigning at least 10 percent of their ad spending to online advertising.
In a separate report published by Market Research Company eMarketer has projected that online advertising spending in the UK is expected to strike $7.75 billion or £4.5 billion mark by 2011, leaving behind the US and other developed countries. The report suggests that the UK is likely to account for almost half of total online ad spending in Western Europe this year, increasing to a 52.6 percent market share in 2010.