Advertising spend in UK – new stats

Advertising: Internet Advertising Bureau/PWC/World Advertising Research Centre stats show internet ad spend up significantly in UK as overall ad market shrinks slightly. Search advertising is still majority (981 million pounds out of 1.68 billion total internet ad spend for Jan-June 08).

Story by Mark Sweney in The Guardian 7 October HERE

Internet advertising spend is “propping up” traditional media, according to a report, surging 21% year on year to £1.68bn in the first six months of 2008.

The resilience of internet ad spend in the downturn turned what would have been a 4.6% year-on-year decline in UK advertising spend in the first half to a slide of just 0.7%, according to the study by the Interactive Advertising Bureau and PricewaterhouseCoopers.

In this study, internet ad share of total market is 18.7% compared to TV advertising at 21.7%.

Compare with USA – see this CHART of stats for June 08 which shows TV (combined local, cable and network) taking around 60% of market, while internet at under 7%.

And compare with China where KPMG report predicts 40% growth of internet ads next year, to $5.2bn out of total ad market of $37.85bn, see Mark Sweney’s story in the Guardian 22 October 2008 HERE.

The same KPMG report sees opportunities in television content for international coproductions with Chinese producers

KPMG also forecasts that China’s huge TV market – 1.19 billion TV viewers over the age of four and one-third of the global cable TV market, which accounts for more than 60% of the country’s media spend – also presents opportunities for western companies.

“Content generation represents a big opportunity. Chinese TV producers are increasingly likely to need to look outside China to secure appropriate content and programme formats for different channels,” Honson said.

In late September Mark Sweney wrote about the downturn in ad spend in UK and predictions of a ‘horror show’ for media companies in 2009.

This puts into perspective Sir Michael Grade’s comments about ITV giving up its public service broadcasting remit, as reported by Andy last week.

Noting the announcement this week of the review of the public broadcasters here in Australia, could it be that the relative size and importance of the ABC and SBS may grow significantly if, as some predict, there will be a decline in the commercial television advertising market which might (given James Packer’s to get out of Channel 9 this week) hasten the demise of the commercial FTA/network system?

Margaret Simons’ overview of the issues around the PSB review is HERE at a new website Inside Story, the brainchild of Peter Browne (Australian Policy Online and Creative Economy) and the Institute of Social Research at Swinburne University. Perhaps here at Inside Story is one answer to what will happen to quality journalism.


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