A new study suggests that online advertising in Britain will grow by 7 per cent by the end of the year and will eventually outstrip the amount of cash that companies spend on advertising via such traditional media as print and television.
A report by eMarketer, called UK Online Advertising Spending and Trends, discovered that online marketing had been spared the effects of the recession in a way that other kinds of media advertising had not been able to avoid.
Last year, advertisers in the UK spent a total of £3.54 billion on online advertising, which was 5.7 per cent more than in the previous year. Conversely the amount spent on advertising in other more traditional media plunged by 16 per cent.
eMarketer senior analyst Karin Von Abrams, who wrote the report, commented: “Internet ad spending continued to grow during the economic downturn, online marketers are well placed to capitalize on the recovery, whether this is slow and halting, or steady and more rapid.”
She said that the company expects spending on online advertising to level out next year, before rising yet again because of the enormous marketing opportunities presented by the 2012 London Olympics.
The extent to which online marketing has avoided the worst of the recession was underlined in a separate statement by the bosses of WPP and Publicis, both of who told the Cannes Lions advertising festival over the weekend that the advertising market was improving – in contrast to other sectors.
Mr Sorrell said that there are “no signs whatsoever” that European clients were reducing their marketing spending, although levels had yet to return to the peaks of 2008.