UK Leads World in Online Advertising
5 Oct 2009 by Dick Branston
New figures show that UK businesses are leading the way in utilising the Internet for advertising. According to data released by the Internet Advertising Bureau, the UK has become the first major world economy where advertisers are now spending more money on online advertising than on more traditional television options.
It is no secret that commercial broadcasters have been struggling to maintain revenues with the recession taking its toll. However, the economic downturn does not fully answer the story. Even before the difficult financial times hit home, TV’s ad revenue was already under siege from the rapidly growing Internet market.
To a certain degree the Internet is beating TV at its own game by placing ads on web streamed videos but the online route to the viewer also offers other benefits that TV advertising cannot. This includes targeted ads and click-through ads, and this is to not mention the impact of unique online advertising phenomena such as pay per click.
So, in the first six months of this year 23.5% of all ad spend in the UK was taken by online forms while television commanded just 21.9%.
To date the world’s other major markets have not matched the UK’s milestone. In the US, online ads make up 15.4% of the total market and still trail TV, while globally the web advertising figure stands at 13.2%.
So the UK leads the way in Internet advertising. It seems that our commercial sector is ahead of the curve in appreciating the enhanced opportunities to connect with potential customers that web advertising offers. And while TV is just about holding on in the rest of the world, it is surely only a matter of time before online overtakes TV across the globe.
associated articles: Online advertising ‘overtakes TV’
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The TV companies got it wrong. They refer to their customers as “viewers”. On the Internet we refer to visitors as “users.”
The difference is as simple as the difference between the 2 words.
One is a passive relationship where you sit and watch, the other (which is clearly more engaging) allows the person to interact. Until TV embraces this, it will be a declining revenue stream.
On that same subject, look at the TV programs that still get decent figures, the vast majority have some sort of semi-interaction. (phone ins, voting systems, etc.)
I think the Internet might just catch on!
That depends solely on you. Im guessing you give them an estimate before you they contract you so if you know that you are going to be purchasing media for their endevor and you obviously know there will be sales tax involved then just add it to the total estimate before hand. The amount your asking for isnt in the thousands so most likely it shouldnt be a hassle for them but if your afraid of losing business then just pay the sales tax yourself.