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Consumer Research


MG OMD Media Marketplace. Online overview

MG OMD Media Marketplace. Online overview

Manning Gottlieb OMD’s latest expert industry insight 
Online advertising spend sees exponential growth

In January’s report, we looked at Online’s performance in 2007 as a whole. Further figures since published by the IAB (Internet Advertising Bureau) demonstrate online’s growth in 2007 and furthermore, its potential growth for the coming years.

Online is still relatively young and it was as few as four years ago that online was the baby of the advertising world.

However, in that time, it has climbed to 3rd place in the advertising sector. In less than a year it has increased its market share from 11.4% to 15.3% and an increase in spend of more than £2m in just 3 years.

While online as a whole has grown by 38% YOY, search continues to spearhead the industry, capturing the largest share of growth of 39%, increasing its 57.6% share to £1.6m.

This is unsurprising given the regular press coverage of strong performance with the likes of Google. Only last month Google announced quarterly profits were up by 31%.

Not only does it appear to be one of the strongest sectors within the online industry but fears of a slump in the economy have far from dented Google’s performance.

In contrast to Comscore’s reports that traffic on paid forclicks was in decline, Google’s own figures paint a much rosier picture, citing a 20% increase YOY in the same quarter.

There hasn’t been a better time to be Google with that and recently hitting the number one spot for a second year in a row on the top 100 Global Brands, published by Millward Brown.

With current trends as they are, the IAB have quite confidently predicted that online spend is set to exceed that of TV by 2009.

The statement doesn’t seem that surprising given that we’ve already seen that Google out-stripped ITV1’s advertising revenue late last year and recent reports predicting no growth in TV ad spend across 2008.

With factors including broadband penetration; cheaper laptops; online video content and social networks, there is great cause for advertisers investing more in online.

Greater still is the fact that more and more TV content is being made available online, through the likes of BBC’s iPlayer & Channel 4’s 4OD. Consumers are changing the way they consume and use media - advertisers are realising they need to do the same.

Telecoms have covered the top three advertiser places this month, with BT back in the top ten for the first time since the beginning of the year. Orange has dropped to third place with O2 maintaining its position for the second month in a row.

While overall spends continue to increase, the top spenders have invested slightly less this month with BT only spending £1.95m compared to Orange’s £2.04m last month.


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