Online Advertising breaks the £3bn threshold!

The costs of online advertising have risen over the £3bn mark in the UK for the first time ever last year. This rise in online advertising has hit more traditional versions of media hard, grabbing the market share from newspapers, magazines and postal mail.

Advertising expenditure across all forms of media rose 4.2% to £19.4bn last year in the UK, according to the World Advertising Research Centre and the Advertising Association

The cinema, outdoor and online advertising sectors made the largest year on year increase with online expenditure up by a massive 39.5%. Online advertising accounted for 16% of the total UK advertising spend in 2007.

Experts have recently stated that advertisers are turning online from other areas of media like postal mail and print. The stats seem to back up the ideas showing that press advertising including newspapers and magazine adverts declining with a 1.6% loss in the last year.

Press however is still the top single sector accounting for 40% in the UK and spent £7.7bn in 2007 on advertising. Postal mail advertising dropped by 6.5% bringing in £2.17bn.

Cinema advertising in the UK rose by 10.1% in year on year growth but the overall market was worth only £207 million, 1.1% of the advertising market in the UK. Outdoor advertising rose by 4.6% making just over £1bn, giving outdoor ads a 5.5% market share. The television sector grew by only 2.3% making £4.67bn, although the growth percentage was disappointing the sector still accounts for 24% of all advertisement spending in the UK.