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UK internet advertising: raising 2010 forecasts - Venture Insights

Report Overview

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UK internet advertising: raising 2010 forecasts

PublisherEnders Analysis.
Publish Date February 4, 2010
Sector Digital Media, Fixed Line (Internet and Voice).
Company Facebook, Google.

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Recent news flow including Google UK’s Q4 2009 results and reports of facebook’s rapid revenue growth points to a better than expected recovery in internet advertising. On a like-for-like basis, we estimate that online ad spend grew 2.2% last year to £3,425 million or 23.5% share of total advertising.

We have raised our 2010 UK forecasts and now predict that Google’s UK gross revenue will grow 12.5% YoY, helping to drive online advertising spend up 7.6% to £3,685 million (excluding sites currently not reported by IABUK/PwC).

The economy remains an issue, with the potential impact of tax rises and cuts in Government spending in H2 threatening the already anaemic recovery. In our view, the balance of risk is still on the downside.