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Online ad spend steadily increasing

The UK has increased its advertising spend by almost 40 per cent in the last 12 months.

That is according to a new study carried out by the Internet Advertising Bureau (IAB), which has revealed that the country's annual online ad spend has shot up by 38 per cent in the period since 2007.

As such, ad spend looks likely to usurp TV spend by the end of this year.

The research, which was jointly conducted by the IAB with PricewaterhouseCoopers and the World Advertising Research Centre (Warc), shows that £2.8 billion was spent on this sector last year.

What's more, the study revealed a 31 per cent year-on-year increase in total internet display advertising spend, as well as a 45 per cent increase in spend on banners, skyscrapers and embedded rich media.

The IAB also noted that spend on embedded formats doubled to 79 per cent of total display in the last two years.

Chief executive of the IAB Guy Phillipson said that the findings show that the UK is "head and shoulders above all other major world markets".

He explained: "It's clear marketing directors now recognise the value of online to drive their business, and more and more are using rich media and video to build their brands, just as they do on TV."

The data shows that online advertising spend is now higher than that of press classifieds and regional newspapers. ADNFCR-1536-ID-18541578-ADNFCR