Online ads record huge growth in 2006
07/02/2007 | Source
Web advertising grew by a faster rate than any other sector last year as marketing firms increasingly look to the internet to generate publicity for their products.
Although official figures are not released until this summer, figures from Nielsen Media Research obtained by Media Week show that ad spending on the net rose to more than $417 million, up 25 per cent.
Such was the rapid growth of online marketing that only two other sectors, outdoor and national newspapers, recorded a rise over the last 12 months and even these only grew by one and two percent respectively.
Magazines, cinema and radio all saw revenues fall while television fared worst of all with a slump of nearly six per cent.
But Adam Smith, futures director at Group M, told the publication it is not yet possible to conclude that there has been a shift in the industry.
"The big question, which at the moment we can't answer, is whether the money in online is migrating from other media, or whether it is new money," he said.
"The audiences that traditional media seem to be losing are the younger audiences, which is where advertisers are looking to spend more money online. It's reasonable to infer the money is migrating."
Furthermore, estimates from eMarketer predict that online spending in the UK is set for huge growth over the next three years.
The research firm expects spending on the internet to jump 20 per cent over the course 2007 and rocket to $216.69 per user in three years time, a rise of 48 per cent.
Web advertising grew by a faster rate than any other sector last year as marketing firms increasingly look to the internet to generate publicity for their products.
Although official figures are not released until this summer, figures from Nielsen Media Research obtained by Media Week show that ad spending on the net rose to more than $417 million, up 25 per cent.
Such was the rapid growth of online marketing that only two other sectors, outdoor and national newspapers, recorded a rise over the last 12 months and even these only grew by one and two percent respectively.
Magazines, cinema and radio all saw revenues fall while television fared worst of all with a slump of nearly six per cent.
But Adam Smith, futures director at Group M, told the publication it is not yet possible to conclude that there has been a shift in the industry.
"The big question, which at the moment we can't answer, is whether the money in online is migrating from other media, or whether it is new money," he said.
"The audiences that traditional media seem to be losing are the younger audiences, which is where advertisers are looking to spend more money online. It's reasonable to infer the money is migrating."
Furthermore, estimates from eMarketer predict that online spending in the UK is set for huge growth over the next three years.
The research firm expects spending on the internet to jump 20 per cent over the course 2007 and rocket to $216.69 per user in three years time, a rise of 48 per cent.
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Web advertising
