It’s been widely reported over the last 24 hours that in the UK digital adspend has finally overtaken TV.
That is what research by the IAB in the UK has uncovered.
“In the first half of 2009 internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period.
“According to the bi-annual online advertising expenditure study from the Internet Advertising Bureau (IAB) – the trade body for digital marketing – in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) – the internet has now overtaken TV advertising to become the UK’s single biggest advertising medium.”
This figure – like the local IAB figures – is made up of paid search, display and classifieds.
In the UK digital grew by 4.6% in the first half of 09, compared with all media which contracted by 16.6%
Looking deeper into these figures, Paid Content found that display was down 5.2% year on year but the overall figure remained positive thanks to search increases (6.8% YOY growth) and classifieds (10.6% YOY)
It’s interesting to compare the UK market to here. In the UK revenue is split as follows
– search 59.8% of digital ad spend
– display 18.1% of digital ad spend
– classifieds 22% of digital ad spend
In AU it splits out as follows …
– search 49.1% of digital ad spend
– display 27.8% of digital ad spend
– classifieds 23.1% of digital ad spend
Also, in the UK consumer goods make up 8.1% of total spend … whereas in AU FMCG makes up 4.66% presently.
So the questions are
– will AU follow the UK and invest more of the digital pool into paid search? At current levels a spend share increase from 49% to 59% would effectively represent a $180m injection into Googles revenues. And will this investment come at the expense of display or in addition?
– how has the UK managed to generate more investment from FMCG and what can we do locally to mirror this? FMCG increased from just over 6% to 8% (which is a significant increase) YOY – which might indicate that we will see a similar increase in AU over the next 6-12 months as direction trickles out of UK head offices into AU.