Figures published last week by the industry trade group in
association with PriceWaterhouseCoopers show that on-line ad spend
now accounts for 3.9% of the advertising market, just above radio's
market share of 3.8%.
A more detailed analysis of the figures, published today,
reveals that by the end of 2004, display and paid-for search
advertising were almost neck and neck in terms of share (36.4% and
38.4% respectively). Both experienced dramatic growth as
advertisers saw their audiences migrating on-line and began to
regard the internet as the most effective way to reach them – a
result of the efficiency of search and the branding power of
on-line display ads.
"Mass audiences are now on-line and consumers are taking
control," said Guy Phillipson, chief executive of the IAB. "They
are researching goods and services to compare quality and prices
before making their purchase decisions – all on-line. Brands are
more exposed than ever and that's why brand building display ads
have grown."
He said that search often has a 'gateway effect' for new
on-line advertisers to get results and build confidence before
going on to invest in brand-building display formats.
Display advertising grew 40.6% to £232.9 million as a result
of this 'gateway effect' and the new 'Universal Advertising
Package' introduced by the IAB last year, which enables advertisers
to trade easily based on a consistent display model, using 'known'
formats.
Sponsorship also experienced yearly growth, up 95.6%,
according to the IAB. Paid-for search grew 87.4% year-on-year to a
2004 total of £257.7 million. And on-line classified advertising
grew 74.2% year on year to £161.4 million. According to the IAB,
the web is proving to be the new classified ad medium and the place
consumers look first for information about jobs, homes, cars and
other big-ticket items.
Finance and recruitment hold the top slots in market share,
with 25.1% and 18% of the market respectively. The travel and
transport (11.8%) and automotive (11%) sectors are third and
fourth, followed by technology (9.7%), consumer goods (7.6%),
entertainment (6.5%), business and industrial (4.3%), retail
(3.7%), government (0.8%), and leisure (0.5%).
