Online advertising growth to slow in 2008
The growth of internet advertising spend is expected to slow significantly this year as the economic downturn forces brands to slash their budgets.
Online ad spend leapt by an impressive 39.5% during 2007 to break through the £3bn barrier for the first time, according to the Advertising Association (AA) and the World Advertising Research Centre (WARC).
However, Revolution can reveal that the rate of growth is set to slow to around 20% during 2008 as big-name brands cut back on their marketing spend.
‘There is a limit to how much further internet ad spend can grow,' said Colin Macleod, research director at WARC. ‘ Especially given the worsening economic climate.'
Despite this, the growth of online advertising continued to outstrip that of other media during 2007, commanding a16% share of total UK ad spend.
Press, however, remained the largest sector for marketers, accounting for 40%, or £7.7bn, of UK ad spend. TV managed a slight 2.3% year on year increase to £4.67bn, representing 24% of all UK ad spend.
Ad spend across all media in the UK rose by 4.2% to £19.4bn in 2007.
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