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October 08, 2010
The UK online advertising market has grown by 10 per cent on a like-for-like basis in H1 2010 to £1,968m, according to IAB UK. It outperformed the overall advertising market recovery. Claiming a 24 per cent market share of total media advertising, which is an all-time high, online made a significant contribution to overall market growth.
Display advertising was up 6.4. per cent to £381m, whereas classifieds rose by 11.3 per cent and are now on par with display (£379m). Paid-for search still commands the biggest share of online advertising of 60 per cent. It grew by 8.9 per cent to £1,180m. Other formats, comprising Solus e-mail and for the first time also display and search lead-generation amounted to £28m.
A closer look at the IAB figures reveals that the majority of display advertising, £272m or 71 per cent, consists of banner advertising and embedded formats. Whereas these formats continue to grow at a single-digit rate, pre- and post-roll video advertising is the major growth driver in the online display segment. Albeit still small with a market size of £21m or 5.4 per cent of online display advertising in H1 2010, it grew by 82 per cent. Looking at the origins of the nascent format when IAB UK measured it for the first time in H1 2008 shows that market value has increased five-fold since.
Online display advertising has long been an area FMCG advertisers, used to the TV advertising ecosystem, were reluctant to embrance. Alongside the proliferation of online video advertising, measurement improvements and introduction of standardised formats that allow better creative exploitation of online, FMCG advertisers are increasingly turning to online advertising. This is reflected in the H1 2010 IAB numbers. FMCG advertisers increased their contribution to online display advertising spend to 12 per cent, up from 9 per cent in H1 2009.
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