Online adspend up to more than £2bn as other media suffer

UK advertising expenditure on the internet increased by almost 50% in 2006 to over £2bn, while most other media suffered a decrease in revenue, according to a report by the Advertising Association.

The internet achieved a market share in excess of 10% of the total advertising expenditure, which was more than £19bn in 2006.

But the press sector, including national and regional titles, accounted for by far the largest share of the market with 43.7% or £8.4bn, followed by television with 24.1% (£4.6bn) and direct mail with 12.2% or £2.3bn.

The internet accounted for 10.6% of the market, outdoor 5.7% or £1.1bn, radio 2.8% (£534m) and cinema 1.0% or £188m.

Total adspend was calculated to reflect advertising spending in total, rather than media income, and therefore includes production costs, advertising agency fees and commission as well as media expenditure.

In terms of display advertising only, calculated by removing classified advertising expenditure from the figures and counting all internet search advertising as classified ads, television was the biggest medium with a 34.1% share.

Press took second place with 32%, followed by direct mail 17.2%, outdoor 8.0%, radio 4.0%, internet 3.4% and cinema 1.4%.

But press, as a whole, declined by 2.7%, with regional newspapers, consumer magazines and business magazines all suffering decreased levels of adspend last year compared with 2005. Directories grew by 3.8% to £1.2bn at current prices and national newspapers rose marginally to £1.9bn.

Broadcast media also suffered with television expenditure, falling 4.7% to £4.6bn -- its first annual decline since 2001 -- and radio adspend was down 7.7% on 2005.

Expenditure on direct mail also decreased, down 2.1%, but cinema advertising remained static.

Aside from online, outdoor advertising was the only other medium to gain in percentage terms, recording a 4.0% increase from 2005.

The results were compiled by the World Advertising Research Centre (WARC).

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