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Google set to challenge ITV in UK advertising

Google is second only to ITV in terms of the highest UK advertising earners and could be set to overtake the television channel in the near future.

Over the course of 2006, Google's UK ad revenue rose above £825 million, putting it ahead of Channel 4, which took revenues of just over £800 million.

Last year, Channel 4's chief executive, Andy Duncan, said that the rise of Google was "a deep structural change" in the makeup of British advertising, adding that "people need to wake up and realise that this is not just a cyclical issue".

The Google boom is good news for small-time internet marketers, as they are able to place ads online at very little expense and expose their product to a wide range of customers.

According to The Times, analysts believe that ITV will reveal 2006 ad revenues of around £1.47 billion, which represents a fall of around eight per cent year-on-year.

This shows that internet advertising is eating into the market share of traditional media such as TV and this trend can only continue as broadband becomes more prevalent and consumers become more internet-savvy.

Google also revealed recently that the incidence of click fraud in its AdWords program is less than 0.02 per cent.

Users using Direct Link Ads can receive a guaranteed 60 per cent of the revenues generated from online ads.

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