Online adspend in the UK accounted for more than three per cent of the total UK advertising budget in the first half of the year, according to the Internet Advertising Revenue Report released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
The report revealed that Internet advertising revenues were up 76 per cent on the same period last year, with marketers investing a cool £266.8m in the medium.
This indicates that a whopping £468.8m was spent on online advertising for the 12 months ending June 30 2004.
On releasing the figures today, the Interactive Advertising Bureau said it was confident that total online adspend for 2004 would cross the half-billion mark for the first time.
Following two years of decline in the wake of September 11th, Internet advertising has now seen eight consecutive quarters of growth and is the fastest-growing medium in the history of advertising.
The IAB has attributed the growth to the fact that people are spending more time online than ever, and the fact that creativity in online advertising is improving.
It seems that marketers have finally opened their eyes to the fact that online advertising is often the most cost effective medium for influencing both branding and sales results.
Danny Meadows-Klue, chief executive of the IAB, said: "We're charting a permanent shift in how the marketing process works. This is still firmly about integrated marketing but as more brands tap into online, marketers are discovering its role in the mix should be even greater. And the staggering pace of innovation means we're only scratching the surface of what this marketing channel can really do."
The Interactive Advertising Bureau (IAB) sponsors the Internet Ad Revenue Report, which is conducted independently by the New Media Group of PwC since 1997. The full report is issued twice yearly at the full and half year, and top-line quarterly estimates are issued for the first and third quarters.
Sources: IAB, PwC, Revolution Magazine
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