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Recession hits UK internet advertising - Venture Insights

Report Overview

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Recession hits UK internet advertising

PublisherEnders Analysis.
Publish Date March 29, 2009
Sector Digital Media, Fixed Line (Internet and Voice).
Company Google.

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IAB/PwC released figures for 2008 showing that annual spending on internet advertising rose 19.1% to £3.35 billion, accounting for close to 20% of total UK advertising, far higher than in any other major market.

The recession started to bite in H2 2008. As budgets are cut, display has been hit harder than search and classified, as a rising share of inventory (almost 50%) is sold by ad networks for discounted CPMs or on a performance-basis.

Our revised forecast for internet advertising is for zero growth in 2009, with a low single digit rise in paid search offset by falls in display and classified.